National Aluminum Company (NALCO)
Date: March 2008 - Stalled
Deal: In August 2008, according to an Indian industry publication, NALCO proposed a joint venture with Alpha, an Iranian company, to construct a smelter and power plant (Projects Today (India), August 12, 2008). According to Indian reports, the project was expected to take three years to complete (India Business Insights (India), February 8, 2009), and involve an estimated investment of Rs 10,000 crore (nearly $2.2 billion) (Business Line (India), February 25, 2010).
According to NALCO's website, the parties signed the initial Memorandum of Understanding for the project in March 2008 (NALCO Website, accessed July 1, 2010).
According to Steel Guru, NALCO delayed the project in August 2009 in hopes of a "better political climate" (Steel Guru, August 14, 2009). Two months later, according to Iran's Press TV, NALCO had still not signed the agreement with Alpha. "Maybe in a month or two," NALCO's Director of Finance stated, "we will go ahead and sign the JV agreement with our local partner" (Press TV (Iran), October 10, 2009).
In December 2009, according to an Indian news service, NALCO was still looking to fund its project in Iran (Business Standard (India), December 23, 2009).
According to an Indian news service, in February 2010, NALCO's Chief Managing Director announced that "we have not been able to pursue our joint venture in Iran," citing "diplomatic reasons" and funding issues (Business Line (India), February 25, 2010).
In June 2010, Business Line reported that NALCO had chosen Aluminium Paras, an Iranian company, as a 15 percent joint partner for the project. However, NALCO declined to provide loan guarantees to two global banks for raising $2 billion for its proposed gas-fired smelter in Iran, leaving the project at a standstill (Business Line (India), June 14, 2010).
In July 2011, NALCO confirmed that the project continued to be on hold "due to paucity of funds," according to the Indian press (Business Standard (India), October 20, 2011).
Date: August 2013
Deal: According to Reuters, NALCO received a contract in August 2013 from the Iran Aluminium Company (Iralco), which was sanctioned by the European Union in December 2012, to sell alumina (Reuters, August 27, 2013).
Ties to U.S. Business: NALCO does not appear to have any business interests in the United States, and according to USASpending.gov, it has received no U.S. government contracts in the last 10 years (USASpending.gov, accessed July 1, 2014).
Last Updated: July 17, 2014