Nalco director A. Ray flanked by Automation Industry Association of India president Ravi Uppal (right) and director Anup Wadhwa in Calcutta on Friday. Picture by Kishor Roy Chowdhury

Calcutta, Nov. 25: The National Aluminium Company (Nalco) has stepped on the gas to acquire new mines for bauxite and coal to gain control over crucial raw materials.

The company has pitched for new coal blocks and a bauxite reserve in Orissa.

?We have asked for two coal blocks for captive consumption. Moreover, we have sought a new bauxite reserve of 75 million tonnes,? a company official said in Calcutta today.

The move by the country?s largest aluminium company comes at a time when it has taken up expansion covering the entire production chain ? starting from mining to power generation for captive consumption.

At present, the company has 310 mt bauxite reserves on the Panchpatmali hills of Koraput district in Orissa. It has a capacity of 4.8 mt per annum. Following the expansion, the mining would go up to 6.3 mt.

?Proposals for new mines are at different stages of development with the state and central governments,? A. Ray, director (personnel and administration), said.

The company has so far received rights for two new blocks, which it will take about 20 months to develop.

Energy contributes a large part of the production cost and Nalco wants to have control over coal to fire its 960-mw thermal power plant. After the firm?s expansion, this will go up to 1,200 mw.

At present, the coal consumption is around 4,000 tonnes per day. Now the coal demand is met internally through a mine with a capacity 3.5 mt per annum at Talcher.

Still, the company had to go in for import of coal due to erratic supply at times.

The company aims to gain control over raw materials to remain cost competitive even after the expansion.

Nalco is investing Rs 4,100 crore for expansion. A zero-debt company at present, it may borrow Rs 400 crore to fund the programme, while the remaining will come from internal accrual.