Hindalco signs MoU with UltraTech Cement to supply 1.2 million MT of red mud

Hindalco Industries Limited and UltraTech Cement Limited have signed a memorandum of understanding (MoU) wherein Hindalco would deliver 1.2 million metric tonnes of red mud (bauxite residue) annually to UltraTech’s 14 plants, located across seven states.

Generated through the alumina manufacturing process, red mud is rich in iron oxides, as well as in alumina, silica, and alkali. The cement industry has been capable of using red mud as a replacement of mined minerals such as laterite and lithomarge in a process of reducing its dependence on natural resources.

Hindalco is the world’s first company to achieve 100 per cent red mud utilisation via its three refineries. It is all set to supply red mud to UltraTech Cement plants, where it would replace up to 3 per cent of clinker raw mix volume.

Hindalco’s alumina refineries are currently supplying 2,50,000 metric tonnes of bauxite residue to cement companies every month, making Hindalco the world’s first company to have enabled such large scale commercial application of bauxite residue. In the current year, Hindalco aims to achieve 2.5 million metric tonnes of bauxite residue utilisation, which will be another global milestone of the company.

This MoU will set another example of a circular economy where the waste of one industry is being used as an input material in another.

On Friday, during the early morning session, the stock of Hindalco was trading 2.1 per cent higher from its previous close while UltraTech Cement was trading 1 per cent higher from its previous close on BSE.