Nalco to engage transaction advisor for merchant mining

Separately, Nalco has lined up an investment of Rs 30,000-35,000 cr on its expansion projects in Odisha

Aluminium major National Aluminium Company (Nalco) would soon appoint a transaction advisor to decide the modalities of its proposed foray into merchant mining.

"We have decided to foray into merchant mining to tap the huge potential offered by a mineral rich state like Odisha. Nalco is gong to appoint a transaction advisor in this connection", said Nalco's chairman and managing director (CMD) T K Chand.

With the value chain shifting in favour of minerals, Nalco is keen to avail the opportunities of government policies to enter into merchant mining. Nalco wants to build a string portfolio in the field of mining in respect of minerals like iron ore and coal.

Its foray into commercial mining is expected to help Nalco build its product portfolio and profitability.

Separately, Nalco has lined up an investment of Rs 30,000-35,000 crore on its expansion projects in Odisha.

The navratna company is adding the fifth stream of one million tonne per annum (mtpa) capacity to its existing alumina refinery at Damanjodi in Koraput district at a cost of Rs 6000 crore. Chand hoped that the refinery expansion would be commissioned by 2018.

Nalco has planned to source bauxite from Pottangi mines, with 70 million tonne reserves, to feed the new refinery stream. The Odisha government has already recommended grant of Pottangi deposits in Nalco's favour and the navratna company hopes to bag them within a month.

In its kitty, Nalco has Utkal D & E coal blocks with reserves of over 200 million tonne. The coal blocks, where Nalco has committed an investment of Rs 2000 crore, would ensure smooth running of its existing smelter at Angul. Nalco has announced a new smelting facility of 0.5 mtpa capacity and 1050 captive power plant (CPP) in Sundargarh district at a cost of Rs 22,000 crore.

Beyond Odisha, Nalco is pursuing the 0.5 mtpa smelter project at Kutch (Gujarat) based on bauxite supplies from Gujarat Mineral Development Corporation (GMDC).

In the overseas market, Nalco is exploring possibilities to set up a greenfield smelter at a location where energy is available at competitive price. Nalco has shortlisted Iran, Indonesia and Oman as possible locations for the overseas smelter.