(Minews) - Domestic coal shortages are prompting India’s National Aluminium Co. (NACL) to plan construction of a $3 billion smelter complex abroad, possibly in Iran.
Indonesia, Vietnam, Malaysia, Oman and United Arab Emirates are other potential sites for the 500,000 metric ton smelter and a 1,000-megawatt captive power plant, National Aluminium’s Chairman Ansuman Das, 59, said in an interview with Bloomberg. He didn’t give a timeline for the project by the state-run maker of a metal used in everything from beverage cans to aircraft and cars.
Iran may boost its natural gas-fired electricity and nuclear power if the talks succeed, making the nation a “great destination” for aluminum smelting, said Kenneth Hoffman, a Bloomberg Intelligence analyst in New Jersey.
A report evaluating overseas locations for the planned smelter will be ready in about two months, Das said.
National Aluminium, also known as Nalco would join companies such as Rio Tinto Group, Alcoa Inc. and Norsk Hydro ASA in tapping cheaper energy in the Middle East.
India produced 565.6 million metric tons of coal in the 12 months through March 2014, compared with demand of 739.4 million tons. Supplies to captive power plants dropped 31 percent to 37.80 million tons, according to the Power Ministry.
Making aluminum with imported coal isn’t viable as it costs $1,900-$1,950 a ton, about $250 more than with local coal, Barclays Plc estimates. Electricity accounts for almost 40 percent of smelting costs.
