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National Aluminium Company (Nalco) today said it plans to acquire a coal mine in an African country, which shares a friendly bilateral relation with India.
“We will like to have a coal mine in an African nation provided it has a better relationship with India,” said Ansuman Das, chairman-cum-managing director of the company while speaking at a seminar organised by Odisha chapter of the Confederation of Indian Industry (CII).
“As we are in the aluminium business, we are eager to have energy assets all over the world,” he added while speaking to diplomats of African nations at the seminar.
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Energy cost makes up to 40 per cent of aluminium production and therefore, every aluminium producer seeks to ensure captive power generation facility. Nalco has been eyeing for an foreign coal block since 2010, but is yet to achieve any major breakthrough. In 2012 it had to scrap an investment proposal to develop a coal mine in Indonesia because of financial constraints of its partnering company. The company, which often complains about the quality and quantity of coal supplied by Mahanadi Coalfields Ltd (MCL), has also been allotted a coal mines in Odisha. It is hopeful of starting the Utkal-E coal mine project soon. Coal crunch had forced the company to curb aluminium production to the tune of 25 per cent in the last fiscal. The company is also interested to set up aluminium smelting units abroad in exchange for assured coal supply. Earlier this year, the state-run PSU had said, it has approached six countries to become partner for its smelting project.
“Nalco has approached the ambassadors of six countries- Indonesia, Vietnam, Malaysia, Qatar, Oman and Iran for setting up smelters overseas in joint venture,” the company said in its annual report in May.
Apart from Nalco, local industries must also talk to African nations for importing coal, CII officials said at the seminar.
“I am told that coal produced by Zimbabwe and other African countries are not inferior than coal imported from Indonesia or Australia. Local industries must engage with African nations for buying coal from them as Paradip port is ready to provide all support,” said S S Mishra, deputy chairman of CII Odisha and Paradip Port Trust chairman.
The seminar was attended by diplomats of Ethiopia, Namibia, Muramira, Uganda and Zimbabwe.
