National Aluminium Company (Nalco) has in principle “secured” supply of all key raw materials – bauxite, limestone, coal and caustic soda – for a proposed one lakh tonnes a year alumina project in Gujarat.
Mr B.L. Bagra, CMD of Nalco confirming the development told Business Line here on Friday that the Gujarat Government agreed to provide the raw materials through two State-promoted outfits for the proposed Rs 4,500 crore (first phase) refinery project in the State. The project is to be set up as a joint venture. Nalco will be the majority partner and Gujarat Minerals Development Corporation (GMDC) will hold a minority stake.
“GMDC and Gujarat Alkalies and Chemicals Ltd (GACL) will supply the principal raw materials,” he added.
“A draft supply agreement has been agreed upon this week,” Nalco CMD said. The draft project agreement has also been made ready. “It has been agreed that GMDC will have a project equity stake of anything between 10 per cent and 26 per cent,” Mr Bagra said. It is expected that early next month the State Government will take a call on the price terms as also the specifics related to the grade of the bauxite and the GMDC's shareholding in the project.
Apart from providing 3 million tonnes a year bauxite, GMDC will also supply coal (lignite) and limestone. GACL, through another joint venture, will supply caustic soda. While the agreements (both for supply and project partnership) with GMDC are likely to be signed in May, the deals with GACL may be sealed by July.
It has also been agreed upon that GACL will take care of the offtake of chlorine produced by the proposed soda ash project. “Entire soda ash to be produced by the would-be project will, however, be for the alumina project,” Mr Bagra said