National Aluminium Company (Nalco) has announced its plan to invest around USD 1 billion in Iran’s aluminum industry and construction of a power plant.

Nalco and Kerman Development Organisation will form up a joint venture (JV) company to make investments in Iran's Aluminum industry and electriciry segment.

Along with management control, Nalco will hold the majority share in the joint venture company.

The new Nalco overseas project entails a 1.55 lakh ton smelter during the initial phase and another identical capacity smelter in the second one, along with a 750 mw gas based captive power plant.

The National Aluminum Company Ltd (NALCO) is intending to set up a 0.5 million ton capacity aluminum plant in South Africa. The new plant would use local mineral resources as its raw material.

During his visit to South Africa earlier this week, the Indian Minister of State for Mines, Subbarami Reddy, had the preliminary discussions on the plan with the the Head of Mining and Steel Ministry of South Africa, Sandile Nogxina.

Reddy, who was with Prime Minister Manmohan Singh during his visit to Nigeria and South Africa, revealed NALCO’s intent on establishing the plant to Nogxina.