Nalco awards contract for development of bauxite mine
India’s National Aluminium Company (Nalco) has awarded a contract for the development of a bauxite mine.
The aluminium producer said it had awarded the contract to Dilip Buildcon for the development and operator contract for the Pottangi bauxite mines, in Koraput district, Odisha, India.
Dilip Buildcon secured the contract after emerging as the lowest bidder for the project.
Nalco’s board approved base mining charges of ₹423 per tonne for the Pottangi mine development. The duration of the contract was set at 25 years.
Nalco stated in an exchange filing yesterday (December 9) that Dilip Buildcon was identified as the lowest bidder for the development and operation of the mines, the overland conveyor corridor and associated infrastructure.
The contract structure includes an initial three year period earmarked for engineering, procurement and construction activities.
These EPC works are valued at nearly ₹1,750 crore ($194 .4 million) and cover seven million tonnes.
The remaining 22 years will focus on mining operations valued at around ₹3,250 crore at the current approved rate of ₹423 per tonne. Mining volumes during the operations phase are estimated at 77 million tonnes over the contracted period.
