4 coal coys keen on JV with Nalco: Report

Indian firm National Aluminium Company (Nalco) said four coal-mining companies had expressed interest to support its US$4 billion aluminium project in East Kalimantan.

Indian media reported on Friday that the Company had received response from four Indonesian coal companies?MEC, Bumi Murau Coal, Energy Indonesia and Param Dwi Jaya?to its EoI (expression of Interest) tenders. Nalco had floated EoI tenders last month, which ended on September 30, 2010.

?If they conform to our requirements, we will ask them to submit the financial biddings,? Nalco director finance BL Bagra, who is also looking after the company?s overseas projects, told FE.

Bagra said the company had invited expression of interest from coal companies which have minimum 500 million tonne of coal reserve with some developed infrastructure like road and port connectivity.

Nalco proposes to set up 0.5 million tones per annum (MTPA) aluminium smelter and 1,250-mw coal based thermal captive power plant in East Kalimantan province in Indonesia at an estimated investment of $4 billion. Alumina of one million MT per annum would be imported from India in bulk shipment through sea route.

The other requirements are fresh water sources, 500 hectares of non-forest and non-litigation land within 3 to 4 km of the mines for setting up the plant, besides preparedness of the company to start production of 10 MTPA coal from 2014 for next 10 years.

Nalco needs 8 - 10 million MTPA of thermal grade coal, 4-5 million MTPA of which is for its 1250 MW pit head captive power plant (CPP) for East Kalimantan project and rest for its energy requirements elsewhere. (*)