Aluminium giant, National Aluminium (Nalco), which has set its eyes on mineral resources world over, is soon going to appoint a consultant firm for its overseas ventures.
?We have floated a global tender to engage a consultant to advise on acquisition of mineral assets outside the country,? Nalco director finance, BL Bagra, told FE. He also added that many merchant bankers and investments bankers are showing interest in the tender, which is going to be closed in the first week of August.
?As part of Nalco?s new policy of diversifying from a single commodity aluminium company to a multi-commodity corporation, the company is now looking for assets outside the country,? Bagra said.
Nalco is proposing to float separate joint ventures with Nuclear Power Corporation of India (NPCIL) and Hindustan Copper for acquisition of nuclear and copper assets respectively overseas. Nalco, which has cash reserves of Rs 4,400 crore, plans to fund the overseas ventures at the debt-equity ratio of 2:1.
Bagra said Nalco is soon going to finalise deals for acquisition of mines in Indonesia, Chile and Namibia, Bagra disclosed stating that it is negotiating for a bauxite mine in Chile, a copper mine in Nambia and a coal block in Indonesia.
Nalco is also looking for mineral assets in countries like Uzbekistan, Ukraine, Mongolia, Senegal, Surinam, Congo, Zambia.
The director finance, who is looking after Nalco?s overseas projects and ventures, said: ?We are looking for mostly copper and uranium mines in these countries as there is not much bauxite in these nations.”
As part of the company?s diversification, it has signed an MoU with NPCIL to set up a merchant nuclear power plant in the country. It is setting up a 0.5 million tonne per annum aluminium smelter and a 1250 mw power plant in Indonesia with an investment of $3.9 billion.