Overseas projects of NALCO in Iran and Indonesia delayed

Business Standard reported that National Aluminium Company Limited’s Greenfield projects in overseas markets like Indonesia and Iran are in limbo because of political and policy hurdles in those countries. Mr CR Pradhan CMD of NALCO during his recent visit to Kolkata said that the policies of the Indonesian government and a volatile political situation in Iran are keeping the aluminium major from setting up its plants entailing an estimated investment of over INR 20,000 crore. He said that “Though, the Indonesian law does not allow foreign companies to have a stake in mineral exploration, the NALCO project would be developed in a JV with a local partner who will have the control of the rights of coal and bauxite mines.” Mr Pradhan said that the company would go ahead with the project, which would require at least INR 10,000 crore investments each, only after there is assurance of the right of some control on the minerals. He said that NALCO would be the majority shareholder and will control the management of the projects. In 2008, NALCO had inked an agreement with the government of Indonesia for setting up a 0.5 million tonne aluminium smelter and a 1,250 MW captive power unit at an investment of about INR 17,000 crore. In Iran, NALCO has plans to set up a 0.330 million tonne smelter in a JV with the Iranian firm ALPHA at an investment of INR 10,000 crore. But, the company seeks a better political climate before it submits the project plan to the Iranian government for approval. It also plans to set up an aluminium smelter in South Africa but the project is in nascent stage. NALCO was aiming to ramp up its production capacity to 0.210 million tonnes per annum for the current fiscal. In 2010 to 2011, the capacity would be scaled up to 0.260 million tonnes. (Sourced from Business Standard)