Rio Tinto seeks FIPB nod for aluminium plant in Gujarat

To exploit growing opportunities in India, world’s largest aluminium producer, Rio Tinto Alcan, will seek the Foreign Investment Promotion Board (FIPB) nod to set up a 15 million tonne activated aluminium plant in Gujarat for an unspecified amount. “Rio Tinto Alcan is seeking the FIPB nod for the plant, which will be set up at the request of the oil refinery customers in the country. A new company will be soon set up for the venture,” said a source. The source added that Alcan had already done the feasibility study in Gujarat even before the merger with Rio Tinto and land has already been acquired for the project. Activated alumina is manufactured from aluminium hydroxide by dehydroxylating it in a way that produces a highly porous material. The compound is used as a desiccant (to keep things dry by absorbing water from the air) and as a filter of fluoride, arsenic and selenium in drinking water. Additionally, the company will also seek the FIPB nod to change the charter of Rio Tinto India Exploration Ltd to include mining activities in order to mine diamonds from the proposed Bunder project in the Bundelkhand region of Madhya Pradesh. The company has its eyes firmly in the country where it continues to remain excited on the prospects of mining. India’s rapid economic expansion has stoked demand for houses, cars and appliances and a resultant increase in demand for iron ore and aluminium. While the Anglo-Australian mining giant is reviving plans to develop iron ore mines in Orissa in joint venture with Orissa Mining Corporation (OMC), it has recently submitted its Expression of Interest (EoI) for Coal India Ltd’s proposal to develop underground mines. The source said the company had submitted the proposal but did not know the details of the proposal. “The EoI had been submitted because the prospect of mining for coking coal was very inviting.” Coal mining per se, has never been a successful business model for the company and is avoided in most cases. Going ahead the source said the company will like to venture into bauxite mining and will like to avoid mining for base metals. “Due to geological reasons base metal mining is not a very attractive proposal in India,” the source said. The company was recently out-bided by London-based Vedanta Group when it tried to pick up a stake in Sesa Goa. However, the source added that the company was looking at any prospects to grow inorganically by picking up stake in smaller independent miners. Source: financialexpress