India's Nalco to build aluminium smelter in S. Sumatra

India's second biggest Aluminium producer, National Aluminium Co. Ltd (Nalco), may build a smelter in Palembang, South Sumatra, a senior government official said on Friday.

"They are planning to build a smelter with a capacity of 500,000 tonnes per year," Ansari Bukhari, a director general at the industry ministry, told reporters.

"With that capacity, Nalco would need a power plant that can generate 1,250 megawatts. To build the smelter and the power plant, NALCO would need a total investment of $3 billion," he was quoted by agencies as saying.

Ansari said that Nalco representatives had already met South Sumatra?s governor Syahrial Oesman and government representatives on Wednesday (Nov 22).

"They wanted us to provide 1,500 hectares of land including facilities like railways, clean waters, access to port and secure coal supplies of 8 million tonnes per year," Ansari said.

The MoU agreement is expected to be signed early next year, Ansari added. (*)