Post Rio Tinto Pull Out, NALCO In Talks With Russian, Chinese Companies

The task ahead for the state-owned aluminium behemoth, the National Aluminium Company (NALCO) is cut out, after it parted ways with Rio Tinto as it refused to share proprietary smelter technology. NALCO is now looking out for a new partner. Sources say finding a new partner will delay its 0.5 mtpa greenfield aluminium smelter plant by 6-8 months. The buzz is that at least two Chinese companies (GAMI and CHINALCO), a Russian major RUSAL and Dubai Aluminium Company are in the fray to bag the Rs 17,000 crore order to provide smelter technology. Interestingly, CHINALCO is also the single largest shareholder in Rio Tinto, a British-Australian MNC. All the four companies are keen to partner NALCO as it has chalked up ambitious expansion plans. Sources say, NALCO has plenty of options to pick up a global partner. For now, the speculation is NALCO aims to commission its aluminium smelter and captive power plant by 2030. The total cost of NALCO’s expansion plan is pegged at Rs 30,000 crore which includes new refineries, smelter, mine operations and captive power plants of 1080 MW. NALCO will use a mix of debt and internal accruals to fund the expansion besides, also exploring possibilities of roping in Coal India and NTPC for power plant projects.