NEW DELHI | April 12, 2016: The state-owned aluminium maker Nalco is considering setting up a 5-lakh tonne per annum aluminium plant in Iran through a joint venture (JV).
Nalco CMD T K Chand, who was part of the delegation led by Petroleum Minister Dharmendra Pradhan to the Islamic country, met a top Iranian official yesterday and discussed the feasibility of setting up such a plant in the Chabahar Free Trade Zone (FTZ), a senior official said.
"Chand met Iran's Mines and Mining Industries Development and Renovation Organisation head Mehdi Karbasian in Tehran over the proposed JV for setting up the plant, which includes a smelter and a gas-based power plant," he added.
The discussions also touched on Nalco's interest to further expand its presence in Iran through more co-operation in bauxite mining and aluminum ingot production, the official said.
The public sector undertaking (PSU) has been scouting for opportunities to set up a gas-based thermal power plant and an aluminium smelter in Iran, Qatar and Oman.
The Navratna firm faces a daunting challenge of keeping operational and raw material costs in check in its bid to stay competitive even as it aims to expand capacity to take advantage of infrastructure boom in India.
It takes around USD 1,500-1,700 to produce one tonne of aluminium, with alumina and power accounting for 40 per cent each of the cost and raw materials and others contributing the remaining 20 per cent.
Yesterday, Nalco had announced that a task force has been set up by the PSU and Iran's industries ministry to deliberate on the proposed smelter and gas-based power plant in Chabahar FTZ.
The task force, comprising senior officials from Nalco, directors of Iran's Ministry of Industries and executives of Iranian Aluminium Company, has been given three months to submit its report on the feasibility of the project.
(Source: http://economictimes.indiatimes.com/)