National Aluminium Co., is seeking to build a smelter and a power plant in Indonesia. According to Chairman B.L. Bagra, discussions are on with two coal companies to buy a stake of 24 percent in one of their mines.
“MEC Coal and Bumi Murau Coal have offered stakes and supplies for National Aluminium's planned projects in East Kalimantan province,” Bagra said in an interview. The company expects to complete the valuation of the mines before the end of the month.
National Aluminium, India's second-biggest aluminum producer, plans to spend $4 billion in Indonesia as it seeks new overseas markets and raw material sources. Demand for the lightweight metal is rising in Indonesia, where economic growth this year is forecast to reach as much as 6.5 percent.
National Aluminium plans to import 800,000 metric tons of coal in the year that began April 1, 45 percent more than the previous year, after increasing its refining capacity by about one-third last month. The company has invited offers for importing 300,000 tons of coal, Bagra said.
The company is likely to start production at its Orissa coal mine by the end of 2012, producing 2 million tons annually. National Aluminium needs about 7 million tons of coal annually to produce electricity for its plants in India.
The state-run aluminum maker plans to spend 3 billion rupees ($68 million) to build a 50-megawatt wind power plant in India and expects to award contracts in about two months.