NALCO still looking for smelter site

MUMBAI (Reuters) - National Aluminium Co. Ltd (NALCO) has not yet decided where to build a planned aluminium smelter and power plant that would cost about 150 billion rupees ($3.4 billion), the company chairman said on Monday.

C.R. Pradhan, who is travelling in the Middle East, told Reuters in a telephone interview that the company was considering sites in Indonesia, Iran and a Middle East country for the plant, which was likely to be operational after 2009.

"We are trying at different places. A group has gone to Indonesia to find out the possibilities," Pradhan said. "Talks are going on, nothing is concrete yet," he added.

Pradhan did not name the Middle East country, but earlier this month he told Reuters that NALCO had been looking at facilities in Dubai.

Last week, Ansari Bukhari, a director general in Indonesia's industry ministry, said there had been talks with NALCO officials about building an aluminium smelter and power plant in Indonesia.

NALCO had also received an offer from Iran to build a greenfield aluminium smelter there. Pradhan said a decision could be made by March next year if the right opportunity came along.

"If it is favourable, then only we will take (a decision) by March. Otherwise, we will again explore," he added.

Asked if NALCO would consider a joint-venture partner for the smelter, Pradhan said that was a possibility, and added the Indonesians had proposed "a few of them."

Pradhan said the initial capacity of the smelter, wherever it was located, would be 250,000 tonnes per annum which would be later ramped up to 500,000 tonnes.

NALCO, which is India's second-biggest aluminium producer and a key exporter of alumina, plans to gradually use more of the raw material for its own aluminium production.