Cheap power could attract India's Nalco to set up $3bn aluminium smelter in Oman

Indian aluminium giant National Aluminium Co Ltd (Nalco) is exploring opportunities in Oman, Iran and Indonesia to set up an aluminium smelter plant with an estimated investment of around US$3bn.

The company would finalise the location for the plant after examining factors like availability of low cost power and infrastructure, T K Chand, chairman and managing director of Nalco, was quoted by the Press Trust of India as telling reporters on Saturday.

The smelter unit is sought to be of 5mtpa capacity together with 150MW captive power plant, Chand said, adding, “Though Nalco is ready to go alone on the project, we are open to a joint venture if a suitable partner comes forward.”

“While power is cheap in Oman and Iran, abundant coal is available at low cost in Indonesia. Port facilities would also be a major factor,” Chand said.

He added the project is likely to take off this year itself as Nalco aims to emerge as a major global player in mining, metal and energy sectors.

In his address at Nalco's annual general meeting (AMG) in eastern city of Bhubaneswar on Saturday, Chand said Nalco is exploring the opportunity to set up a greenfield aluminium smelter in a country where energy would be available at a competitive prices. “Based on a study carried out by consultants for identification of suitable location, further action is being envisaged,” he added.

As reported by Indian media, Nalco is all set to invest over R650bn (RO3.78bn) to launch ambitious projects in India and abroad, besides undertaking expansion and diversification into power and mining sectors in a big way.

“At this stage, [the] company is targeting to be a global player in the mining, metal and energy sectors. But, as you know, the aluminium sector is in the midst of numerous challenges and so is [the] company. We need to convert these challenges into opportunities. We have planned to increase the existing metal, alumina and bauxite production and start coal mining,” Chanda said while addressing shareholders at the AGM.

Nalco, a state enterprise, runs India’s largest integrated alumina-aluminium complex.