NALCO, RMMI sign MoU to develop $4b smelter, power plant projects

Indian firm National Aluminum Company Limited (NALCO) on Friday signed an MOU in Jakarta with Ras Al Khaimah Minerals & Metals Investment (RMMI) to jointly develop a 500,000 TPA alumina smelter and 1,250-MW coal-fired power plant in Tanjung Api-Api, South Sumatra.

The project is estimated to cost both companies US$4 billion to build, NALCO CFO L. Barga said, adding that the Government of Indonesia has accorded foreign investment approval to NALCO?s proposed project.

The expected the project would start construction in 2009 with completion seen in 2013.

RMMI will fund 24 percent of the project, RMMI CEO Naveen Chandralal said. (bernard)

PROJECT DETAILS

PROPOSED INVESTMENT: APPROXIMATE US$4.0 BILLION

SMELTER CAPACITY: 0.25 MILLION TON (1st PHASE); 0.25 MILLION TON (2nd PHASE)

COAL BASED POWER PLANT: 6 x 120 MW (1st PHASE); 4x 120 MW (2nd PHASE)

COAL REQUIRED: 5 MILLION TON PER YEAR

RAW MATERIALS

ALUMINA: 1,0 MILLION TON PER YEAR (TO BE SOURCED FROM INDIA)

PROJECT PERIOD: 40 MONTHS (FOR EACH PHASE)

LAND: 1000 HECTARE

LOCATION OF LAND FOR SMELTER: TANJUNG API-API

SEAPORT: 35000 DWT CAPACITY SHIP

PORT HANDLING CAPACITY: 2.0 MILLION TON PER YEAR

TECHNOLOGY FOR SMELTER: AP36