State run NALCO is set to finalize a deal with a miner by next month for supply of coal to its USD 3.8 billion aluminium cum power project in Indonesia.

Mr BL Bagra CMD of NLACO told PTI that "We are looking at a coal mine basically to provide coal to our power and smelter project there (Indonesia). We need 5 MTPA for 25 years. We have zeroed in on one of the five proposals and the Board will take a final decision on it by the end of next month.”

The aluminium major has plans to set up a 5 MTPA aluminium smelter and a 1,250 MW power plant in Indonesia entailing USD 3.8 billion (about INR 18,000 crore)investment.

Mr Bagra said that the coal mines shortlisted has reserves of about 200 million tonnes.

Sources said the company has zeroed in on Muara Enim mine in the East Kalimantan district of Indonesia.

Mr Bagra said five coal miners had responded to NALCO's bid seeking sourcing of coal for its project, and two of them had fulfilled the criteria.

The five firms included MEC Middle East, Pram Dwi Jaya Muara Enim and Bumi Muara Prasada.

There is no dearth of financial resources for it as the company has surplus reserves and there was no debt liability, the CMD said.

(Sourced from ET)