India: Nalco puts smelter project on hold

Plans to erect a 0.5Mt/year aluminium smelter in the East Kalimantan area of Indonesia have been put on hold due to uncertainty over the supply of coal.

According to Nalco chairman BL Bagra, the company had intended to set up a US$4 billion smelter and wanted to construct a coal-fired 1,250mW power plant to feed it.

Having found a coal mining company to supply the coal on a long-term basis, the project was delayed because the mining company was undergoing 'ownership restructuring' and was having difficulty achieving 'financial closure' for the project.