Nalco signs MoU for building aluminium smelter in Iran

National Aluminium Company (Nalco) said on Monday it has signed a memorandum of understanding (MoU) with Iranian Mines & Mining Industries Development & Renovation Organization (IMIDRO) for building an aluminium smelter in Iran, as New Delhi tries to boost trade ties with Tehran during Prime Minister Narendra Modi's visit to the country.

"The company has signed an MoU with Iranian Mines & Mining Industries Development & Renovation Organization (IMIDRO) to jointly explore the possibility of setting up an aluminium smelter in Iran, with supply of alumina from Nalco refinery in India," Nalco said in a filing to the BSE.

"The MoU also envisages tolling arrangement with existing smelters in Iran for producing aluminium from alumina supplied by NALCO," it added.

Tapan Kumar Chand, chairman and managing director of Nalco, said, "Nalco is looking forward to use the low-cost gas-based energy available in Iran for conversion of its surplus alumina, presently exported to international markets, to bring in value addition and scale up value chain,''.

The company's board meeting is scheduled to be held on 28 May to consider and approve the standalone and consolidated audited financial results for the quarter / year ended 31 March 2016 and for recommendation of final dividend, if any, for the financial year 2015-16.

Also, the company will consider the buyback of its fully paid-up equity shares on 25 May.