Nalco and UAE minerals firm to invest in Indonesian project

National Aluminium Co (NALCO) and RAK Minerals and Metals Investment (RMMI), promoted by the Ras Al Khaimah Investment Authority, UAE, plan to jointly build Rs14,000 crore project in Indonesia.

RMMI is a joint venture between the Ras Al Khaimah Investment Authority (RAKIA) and Trimex International with existing investments and operations in Indonesian coal mines.The UAE firm will acquire a 24-per cent equity stake in Nalco's new aluminium smelter plant in Indonesia, for which it had signed an agreement with the Indonesian government in early January 2008.

Under the agreement NALCO and RMMI will set up a 500,000-tonne smelter and a 1,250 MW captive power plant in South Sumatra province at an investment of Rs14,000 crore. 

The aluminium smelter will require a feedstock of 1 million tonnes of alumina and is scheduled to be completed in 2013.

RMMI manage the construction schedules of ports and rail corridor Leaving Nalco free to focus on the smelter and power plant.

NALCO said it would  leverage on RMMI's existing coal mine operations and infrastructure, provide the coal energy for the plant and manage the logistics needed for the operations of the proposed aluminium smelter.