Nalco Awards 25-Year Pottangi Bauxite Mine Contract to Dilip Buildcon

National Aluminium Co. Ltd (Nalco) has announced that its Board of Directors has approved the award of a major Mine Developer and Operator (MDO) contract for the development and operation of the Pottangi Bauxite Mines. 

The decision was taken during the board meeting held on December 9, 2025, marking a significant step forward for Nalco’s raw material expansion and long-term resource security strategy.

Dilip Buildcon Selected as L-1 Bidder

The contract has been awarded to M/s Dilip Buildcon Limited, which emerged as the L-1 bidder for the project. The company will be responsible for developing and operating the Pottangi Bauxite Mines, along with constructing and managing the Overland Conveyor Corridor (OLCC) and associated infrastructure. 

The base mining charge has been fixed at ₹423 per ton, and the contract period extends for 25 years. This long-term arrangement is expected to enhance operational efficiency and ensure steady bauxite supply for Nalco’s alumina and aluminium production units.

Strengthening Nalco’s Resource Security

The development of the Pottangi mines is essential for supporting Nalco’s growing production requirements. With a reliable MDO partner in place, the company aims to streamline logistics, reduce raw material dependency, and improve cost competitiveness through modern mining practices and integrated transport facilities.

NALCO Share Price Performance

On December 10, 2025, NALCO share price opened at ₹265.00, touching the day’s low at ₹263.45, as of 12:03 PM on the NSE.

Dilip Buildcon Share Price Performance

On December 10, 2025, Dilip Buildcon share price (NSE: DBL) opened at ₹466.00, touching the day’s high at ₹478.15, as of 12:03 PM on the NSE.

Also Read: Dilip Buildcon Wins Order Worth ₹879.30 Crore from NHAI!

Conclusion

Nalco’s approval of the 25-year MDO contract with Dilip Buildcon marks a key milestone in securing long-term bauxite supply for its operations. The project is expected to boost production efficiency and support future capacity expansion while reinforcing the company’s strategic focus on sustainable mining and infrastructure development.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.