KOLKATA: National Aluminum Co (Nalco) has entered into a joint venture agreement with United Arab Emirates government linked RAK Minerals and Metals Investment for setting up a 5 lakh tonne smelter in Indonesia at a project cost of around $4 billion. The venture is likely to have Nalco as majority partner with around 75% stake.
“This company is almost like a local company, which will be involved in construction of railways and ports in Indonesia on a built, own, operate basis. We are in the process of tying up other logistics on the coal front. The smelter, which will be set up in Sumatra is likely to start production in a year and a half’s time,” sources told DNA Money.
“Some other approvals are also expected along with technical issues that have to be cleared. The entire project would include a 1,250 mw power plant as well,” the source said. DNA Money had reported on November 13 that Nalco was tying up its logistics in Indonesia and had earmarked a land in the south Sumatra province after exploring 2-3 sites for its project viability and had almost frozen its joint venture partner.
The company would provide a detailed project report following clearance of various issues and the project could take off by early 2010. Nalco is also actively pursuing setting up a gas-based 3.1 lakh tonne smelter in Iran. A 750 mw power plant would be set up as well along with the smelter. “In Iran we would again go in for a joint venture with an Iranian company, which cannot be divulged now,” he added.
Meanwhile the aluminum major has put its plans in South Africa and Saudi Arabia, the other proposed projects on the backburner. Back home, the company is awaiting the clearance for allotment of water for its proposed 5 lakh smelter in Jharsuguda in western Orissa, following which it will proceed on the land front.
Nalco has ambitious plans to invest Rs 40,000 crore in greenfield projects in India and abroad.
