MARKET TALK: Essar, Rusal Hold Talks On Alumina Plant - Rprt

India's bauxite mining sector gaining global interest as Russia's aluminum maker Rusal holds preliminary talks with Essar Group (ESG.YY) to set up 1-million-metric-ton-a-year alumina refinery plant in Orissa state, project cost likely $1 billion, reports Economic Times. Unlikely to impact Essar shares in near term. "Availability of cheap power is important as alumina, which is extracted from bauxite, is refined electrolytically to make aluminum", says local analyst; adds Rusal move in line with global aluminum makers which are shifting to low-cost production centers, closing plants in north America and Europe due to high power costs; Canada's Alcan (AL) has already teamed up with Hindalco Industries (500440.BY) under Utkal Alumina to build an alumina refinery in Orissa.