Nalco short-lists 2 firms to supply coal for Indonesian project

Indian state-owned firm firm National Aluminium Company (Nalco) has shortlisted MEC Coal and Bumi Murau Coal for supplying coal to its $4-billion Indonesia aluminium smelter project, Business Standard reported quoting Nalco?s senior official.

The state-owned company had floated a tender in September and four companies MEC Coal, Bumi Murau Coal, Energy Indonesia and Pram Dwi Jaya had submitted their bids.

CFO B L Bagra told Business Standard that while MEC fully qualified for the deal, Bumi qualified on most of the critical criteria. According to him, the benchmark criteria to bid for the Indonesian project included minimum coal reserves of 500 million tonnes, infrastructural approvals, land must have been acquired and mining experience.

Nalco plans to set up a 0.5-million tonne per annum aluminium smelter and a 1,250 megawatt power plant in East Kalimantan. Bagra said the company had sought more information from Bumi. "Once they do that, we will begin the discussion on commercial terms with the two and finally choose one for the coal supply." (*)