
National Aluminium Company Ltd said on December 9 that its board has cleared the proposal to award the mine developer and operator contract for the Pottangi bauxite mines.
Dilip Buildcon Ltd secured the contract after emerging as the lowest bidder for the project. The board approved base mining charges of ₹423 per tonne for the Pottangi mine development. The duration of the contract has been set at 25 years.
NALCO stated in its exchange filing that Dilip Buildcon was identified as the lowest bidder for the development and operation of the Pottangi bauxite 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 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.
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