Indian company to invest US$3 billion in aluminium smelter

Jakarta (ANTARA News) - India`s National Aluminium Company Ltd. (NALCO) is looking into the possibility of building an integrated aluminium ingot smelter in the Indonesian province of South Sumatra at a total cost of US$3 billion.

A memorandum of understanding (MoU) to that effect was signed by the company`s finance director, BL Bagra, and South Sumatra Vice Governor Mahyuddin NS in the presence of Director General of Metal, Machinery, Textile and Multifarious Industries at the Trade Ministry Anshari Bukhari on Friday.

Bagra said the company would still have to conduct a feasibility study to build the project.

NALCO would only engage in the upstream aluminium industry, he said.

Anshari said the smelter was expected to have a capacity of producing 250,000 tons of aluminium ingot per year.

To support its activities, NALCO would also build a coal-fired power plant with a capacity of generating 3X250 MW, public utilities and employee`s housing complex on 1,000 hectares of land, he said.

"The total investment is expected to reach US$3 billion," he said.