PTI reported that NALCO has selected UAE based RAK Minerals as JV partner for its INR 18,000 crore aluminium cum power project in Indonesia and is looking at commencing work on it by June 2011.
The company proposes to set up 0.5 million tonne per annum aluminium smelter and 1,250 MW captive thermal power plant in East Kalimantan, Indonesia part of its ongoing INR 58,000 crore capacity expansion plan.
Mr BL Bagra finance director of NALCOs said that we have selected Ras al Khaimah Minerals as one of the JV partners for the project while others would be finalised soon. NALCO will have majority stake in the JV. JV agreements are likely to be finalized in 6 months and the company hopes to start work on the projects by June 2011.
He said that an Indonesian state-owned mining firm too has evinced interest in the project which will have debt equity ratio of 70:30. NALCO's investment would be 15% of the total project cost while the JV partners would fund 15% and the remaining 70% would come through loans.
NALCO, which is Asia's largest integrated aluminium complex, encompassing bauxite mining, alumina refining and aluminium smelting had inked a pact with Government of South Sumatra, Indonesia for the projects in January 2008. However, the project remained stuck following delays in development of port at Tanjung Api api and railway line in South Sumatra.
Later, Indonesian Investment Coordination Board gave approval for alternative location of the project in East Kalimantan. While the company intends to import about one million tonne of alumina annually from its facilities in India to feed the aluminium smelter it will procure coal for the captive power plant locally for which it has already invited bids from coal companies.
The company needs about 10 MTPA of thermal grade coal, half of which will be to feed its East Kalimantan project and the rest for its energy requirement elsewhere. The government holds 87.15% stake in the PSU, which is undertaking about INR 58,000 crore expansion projects which includes over INR 16,000 crore Orissa project for setting up 5 MTPA smelter plant and 1,260 MW power plants. It had a turnover of INR 5,548 crore in 2009 to 10 against INR 5,631 crore in the previous year.
(Sourced from news.in.msn.com)
