NALCO sees progress in securing Andhra Pradesh lease

NEW DELHI (Reuters) - State-run National Aluminium Co Ltd has made headway in securing a mining lease from Andhra Pradesh, which could be the key to setting up a new greenfield aluminium smelter.

"We have applied for the mining clearance. They (Andhra Pradesh) have said they are willing to give it," NALCO chairman C.R. Pradhan told Reuters over the telephone.

He did not elaborate on the investment the company could make in Andhra Pradesh once the mining lease is secured.

Pradhan said the company was on track to achieving brownfield expansion that will lift its annual aluminium production capacity to 460,000 tonnes by the end of 2008 from the current level of 350,000 tonnes.

The company chairman said little progress had been made in finalising production facilities overseas, despite efforts to establish one in countries such as Indonesia.

NALCO has been looking to build an aluminium plant overseas with 350,000 tonnes annual capacity, along with a power unit capable of generating 1,300 MW.