Nalco shelves South Africa project; puts Iran project on hold

In a twin decision on its global operations involving about Rs 27,000-crore investment, the state-owned aluminium major Nalco has shelved its proposed project in South Africa, and has put on hold the one in Iran.

Nalco had planned a Rs 17,000-crore project in South Africa to set up a 500,000 tonne aluminium smelter plant and a 1,250-Mw power plant. However, both these projects have been abandoned now, as the company has found there is insufficient coal in the offered reserves to feed the ventures, Nalco Director Finance B L Bagra said.

“We could not get coal resource as required to run the captive power plant which was to feed the smelter project. The authorities there had offered some blocks, but it was not sufficient to meet our requirement,” Bagra explained.

The Nalco official has also informed that the company has put on hold the Rs 10,000-crore Iranian project, which involved setting up a 330,000-tonne aluminium smelter plant and an 800-Mw power station, as the company has so far been unable to tie up funds for the project.

“In Iran, we are still not able to tie up funds for the project. The project, thus, is currently on hold,” Bagra said, adding, however, that the company is still in the process of securing finances for the project. But did not name the prospective lenders with whom the company is in talks.