Mumbai: Aditya Birla flagship Hindalco Industries said on 2 July it has entered into a joint venture with Mahanadi Coal Ltd (MCL) and Neyveli Lignite Corporation (NLC) for carrying out mining activities.
Hindalco Industries has entered into a joint venture agreement with MCL, a subsidiary of Coal India, and NLC for Talabira II and III coal blocks, the company said in a communique to the Bombay Stock Exchange.
The joint venture company is expected to be formed in the next three to six months. Hindalco Industries and NCL would have 15% shareholding each, while MCL would hold 70% in the proposed venture.
The proposed company is likely to commence coal mining of 20 million tonne per year by 2009-2010.
At full capacity, it would utilise 3 million tonne per year for the captive power plant to operate the smelter in its project Aditya Aluminium in Orissa.
The agreement is subject to final approval from the government as well as other respective boards, it said.
Earlier in May, Hindalco acquired the US-based Novelis Inc for around six billion dollar, becoming the world’s largest aluminium rolled products company.
Shares of Hindalco were trading at Rs161.50, up 0.62 on the BSE in afternoon trade.