Nalco, Tata in Talks over Aluminum Plant in S.Afr

India’s National AluminiumCo. (Nalco) is in talks with Tata Group over building a US$3 billion aluminum plant in South Africa, taking advantage of cheap power price in the country. Nalco’s chairman C.R.Pradhan said the company is seeking for a partner, with currently talking with several companies including Tata Group’s subsidiary. Nalco’s projecting building aluminum smelters in Indonesia, Iran and South Africa by using of low electricity, rich gas and cheap labor in the countries. Electricity cost accounts for one third in the cost of aluminum production, which is mainly applied to auto components, airplane and beverage can. As soon as having secured power supply with South African government, Nalco will start the project immediately, with Nalco holding a 51% stake in the joint venture, said Pradhan. Tata Steel, subsidiary of Tata Group, is the world’s sixth largest steel producer. Its new ferrochrome plant at Richards Bay in South Africa has put into production in April 3, where Nalco is hoping to set an aluminum plant. COPYRIGHT All rights reserved. The copying, republication or redistribution of WAM News Content, including by framing or similar means, is expressly prohibited without the prior written consent of WAM.