NALCO board okays 25-year bauxite mining contract to Dilip Buildcon at ₹423/tonne

State-owned National Aluminium Company Ltd (NALCO) on Tuesday, December 9, said its board of directors has approved the proposal to award a mine developer and operator contract for the Pottangi bauxite

mines.

The contract has gone to Dilip Buildcon Ltd

, which emerged as the L-1 bidder. The board approved the base mining charges at ₹423 per tonne for the project. The contract period has been fixed for 25 years.

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The Bhopal-based company "emerged as the L-1 bidder for MDO Contract for Development and Operation of Pottangi Bauxite Mines along with Overland Conveyor Corridor (OLCC) and allied facilities," it said in an exchange filing.

The contract spans 25 years, with the first three years dedicated to engineering, procurement and construction (EPC) work valued at ₹1,750 crore and covering seven million tonnes. The remaining 22 years comprise mining operations valued at ₹3,250 crore at current rates (₹423/tonne), covering 77 million tonnes.

Shares of National Aluminium Co Ltd ended at ₹265, down by ₹3.35, or 1.25%, on the BSE today, December 9. Dilip Buildcon shares ended 5.36% in the green at ₹465.95 apiece.

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