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Sunday, 03 October 10
NALCO TO FINALIZE INDONESIA COAL DEAL BY JANUARY - HINDUSTAN TIMES


HindustanTimes reported that, state-owned National Aluminium Company (NALCO) will finalise a deal with a coal source in Indonesia for its $4 billion aluminium project in that country by January 2011, NALCO Director (Finance) B L Bagra said on Saturday.

The Bhubaneswar-headquartered company had floated tender last month.

Bagra said four bids were received from Indonesian coal firms for the tender and it will take at least one month for the company to evaluate them.

The company will then examine the technical and commercial feasibility.

"By the next four months, we should be finalising the deal," Bagra told IANS.

NALCO had received the expression of interests from the companies like Middle East Coal (MEC), Bumi Murau Coal, Energy Indonesia and Pram Dwi Jaya, he said.

NALCO has already been accorded foreign investment approval by the Indonesian government to set up a 0.5 million tonnes aluminium smelter and a 1,250 MW coal-based thermal captive power plant in East Kalimantan province of that country.

Bagra said NALCO had invited bids from competent coal miners or concession holders for coal reserves in East Kalimantan province having coal mines in close proximity to seaport and fresh water source and infrastructure.

NALCO, Asia's largest integrated aluminium producer, would import alumina of one million tonnes per annum from its facilities in India in bulk shipment through sea route, he said.

The company, however, requires eight to 10 million tonnes annually of thermal grade coal, about half of which will serve its East Kalimantan project and the rest will meet its energy requirement elsewhere.

Bagra said NALCO has already opened an office in Jakarta, the capital of Indonesia, to expedite the project activities.

It has set an ambitious target of achieving an annual turnover of Rs 25,000 crore by 2020, giving major thrust to diversification and capacity expansion.

The company has decided to venture into new fields of activities beyond aluminium by setting up at least two numbers of diversified projects by 2016.
Source: HindustanTimes



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