Monday, January 14, 2008

NALCO Inks $3.4 Bn Smelter Deal

National Aluminium Co Ltd (Nalco) signed a deal with the Indonesian government in Jakarta to set up a 500,000-tonne smelter and a 1,250-MW captive power plant in that country at a cost of $3.4 billion, the company said in Bhubaneswar. A memorandum of understanding (MoU) to this effect was signed between B.L. Bagra, director, finance, NALCO, and H. Mahyuddin, vice-governor, South Sumatra Province, Indonesia.

The state-owned company plans to invest around $3.4 billion in this greenfield project, to be built in two phases. Besides Indonesia, NALCO is also exploring possibilities of setting up plants in Iran, Saudi Arabia and South Africa. Closer home, NALCO is trying to set up an aluminium park for upstream and downstream industries in Angul in Orissa, as a joint venture with Orissa Industrial Infrastructure Development Corp (IDCO). It is acquiring 500 acres for this purpose. NALCO and IDCO will jointly take care of infrastructure, communication and power supply.

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