NALCO, IMIDRO sign MoU to set up alum smelter in Iran

The Dollar Business Bureau

State-owned National Aluminium Company Limited (NALCO) and Mines & Mining Industries Development & Renovation Organisation (IMIDRO) of Iran have signed a Memorandum of Understanding (MoU) to together explore the possibility of establishing an aluminium smelter in the Islamic Republic of Iran.

"NALCO has signed an MoU with IMIDRO to jointly explore the possibility of setting up an aluminium smelter in Iran, with supply of alumina from NALCO’s refinery in India," the company said in a filing with BSE.

The MoU also anticipates tolling arrangement with prevailing smelters in Iran for manufacturing aluminium from alumina provided by the company, among other things.

T K Chand, Chairman & Managing Director, NALCO, said, “We are looking forward to utilise the gas-based energy available at lower prices in Iran for converting our excess alumina, currently shipped to overseas markets, to add value and improve our value chain.”

As per the terms agreed upon, a joint taskforce will be set up that consists of experts from NALCO and IMIDRO, to work out the project details.

The MoU was signed between NALCO’s CMD and Iran’s Planning Board Vice Chairman, in Tehran in the presence of Prime Minister Narendra Modi and Hassan Rouhani, the President of Iran.

Previously, NALCO’s CMD T K Chand had visited the Islamic Republic as a part of business delegation from India, led by Dharmendra Pradhan, Union Minister for Petroleum and Natural Gas. During his visit, the CMD held meetings with Iran’s Deputy Minister of Industry, Mines & Trade, IMIDRO’s Chairman and several top officials of Iranian government and heads of other aluminium firms.