Nalco, Hindustan Copper, MECL sign pact to acquire overseas minerals

Task force constituted to prepare draft of JV agreement by the second week of Nov

Aluminium major National Aluminium Company Ltd (Nalco) has teamed up with two more central PSUs- Hindustan Copper Ltd (HCL) and Mineral Exploration Corporation Ltd (MECL)- to explore acquisition options through a joint venture agreement.

The three central PSUs entered into a memorandum of understanding (MoU) on Tuesday with the objective of making the country self-reliant in select areas, where it faces issues of scarcity or complete lack of availability. In this respect, the plan involves increasing the availability of 12 strategic minerals.

The MoU was signed by the respective heads of the firms- T K Chand, chairman cum managing director (CMD), Nalco, Santosh Sharma, CMD at HCL and Gopal Dhawan, CMD of MECL.

"The objective of the MoU is to set up a joint venture (JV) company namely Khanij Bidesh India Ltd (KABIL) to identify, explore, acquire, develop and process strategic minerals overseas for commercial use and to meet the domestic requirements across the country. It will provide a boost to Centre's Make in India drive as well," said Nalco in a statement.

A task force, chaired by the director of projects of Nalco, has been formed to put up a draft JV agreement by the second week of November. The three CMDs are scheduled to meet again towards the third week of November to finalise the modalities of the JV pact.