Hindalco to supply 1.2 mn tonne red mud to Ultratech in new deal

Move will help cement maker reduce dependence on natural resources and promote circular economy; Red mud is a waste product generated in alumina production

In a bid to lower dependence on natural resources, UltraTech Cement has signed a Memorandum of Understanding with Hindalco Industries, under which the aluminium producer will deliver 1.2 million tonnes of red mud a year to UltraTech plants across seven states.  

The red mud, also known as the bauxite residue, will be supplied to 14 plants of Ultratech, replacing up to three per cent of clinker raw mix volume.

Red mud is a waste product generated in the industrial production of alumina, the principal raw material used in the manufacture of aluminium metal. The material, however, finds application in the cement industry, road construction and as a source of iron.

Hindalco is the world’s first company to achieve 100 per cent red mud utilisation across three of its refineries, said the company release.

Alumina refineries of Hindalco are currently supplying 250,000 metric tonne of bauxite residue to cement firms every month, enabling large-scale commercial application of bauxite residue.

With this, Hindalco aims to achieve 2.5 million metric tonne of bauxite residue utilisation in FY21.

“Hindalco has been working with cement companies to develop high-grade inputs for the construction industry. Our vision is to achieve zero-waste alumina production across our operations," Satish Pai, managing director at Hindalco was quoted as saying.

Globally, 160 million tonne of red mud is produced annually and stored in large tracts of land, which is a serious industry challenge.

To find a sustainable solution, Hindalco has invested in infrastructure and collaborated with cement companies, with UltraTech Cement being a key partner.

“UltraTech has been among the early adopters in India on the use of alternative raw materials and fuels in manufacturing and invested to build storage, handling and processing facilities. We expect to conserve more than 1 million metric tonne of mined natural resources like laterite in our manufacturing process,” K C Jhanwar, managing director at UltraTech Cement was quoted as saying.

Last year, UltraTech consumed about 15.73 million metric tonne of industrial waste as alternate raw material and about 300,000 metric tonne as alternative fuel in its kilns.

Waste of one industry being used as an input material in another is more than an example of a circular economy and exemplifies sustainability-first approach to business, said the Aditya Birla Group company.