Comments
State-run NALCO is set to finalise a deal with a miner by next month for supply of coal to its $3.8 billion aluminium-cum-power project in Indonesia.
“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,” NALCO CMD Mr B L Bagra told PTI.
The aluminium major has plans to set up a 5-MTPA aluminium smelter and a 1,250-MW power plant in Indonesia entailing $3.8 billion (about Rs 18,000 crore)investment.
The coal mines shortlisted has reserves of about 200 million tonnes (MT), Bagra said.
Sources said the company has zeroed in on Muara Enim mine in the East Kalimantan district of Indonesia.
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.
“We have Rs 4,500 crore cash balance. There is no debt liability. We have investment plans lined up for next three-four years. Our investment requirement for 2012-13 is to the tune of Rs 2,200 crore,” he said.
The Indonesia project will be managed through a special purpose vehicle (SPV), in which the aluminium major will have a controlling stake.
NALCO’s investment would be 15 per cent of the total project cost, while the JV partners would fund 15 per cent and the remaining 70 per cent would come through loans.
The project would be developed in about four years, including one year for preparing the feasibility study and DPR, following finalisation of the coal supply agreement.
The firm intends to import about one million tonne of alumina annually from its facilities in India to feed the aluminium smelter, while the thermal grade coal for captive power plant will be procured locally.
The company had invited Expression of Interest from competent miners or concession holders having resources in close proximity to seaport, fresh water source and other infrastructure facilities, for coal supply.
NALCO plans to invest Rs 57,903 crore by 2020 on expansion, including the setting up of two large aluminium smelters in India and abroad.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.