Nalco to import coal to avoid reducing output

The company, India's biggest alumina maker, will purchase thermal coal from countries including Indonesia in two months, Chairman C R Pradhan said in an interview. Last month, it bought 30,000 tonnes at an average Rs 8,000 ($186) a tonne, he said.

Aluminium Corporation of China and 19 producers in the Asian nation last week pledged to cut output by as much as 10 per cent because of a power shortage, sending the metal soaring last week.

Production at National Aluminium fell 30 per cent for six days in June after supplies from Coal India to its 960 mw power plant were disrupted by a strike.

"Shutting down operations will create problems, which we want to avoid at any cost,'' Pradhan said. "By importing, we can avoid the troubles that we encountered earlier.''

Coal used to fire power plants will average $180 a tonne next year, compared with a previous forecast of $140 a tonne, Macquarie Group said last week, citing