Under the agreemnet, RMMI will provide 5 million mtpa of low sulphur thermal coal to manage the energy needs of the aluminium smelter.
This equity stake brings the overall investment of the smelter and power plant to $4 billion, said an RMMI official.
Through this joint venture, RMMI will be able to expand its mining capacity in Indonesia, and increase the much needed supply chain infrastructure surrounding our current operations in South Sumatera," said Madhu Koneru, managing director of RMMI.
Entry of RMMI into the project would create synergic value for the two companies and enhance the commitment to the project," said Bajrang Bagra, director finance of Nalco.
The schedules of construction of port and rail corridor by RMMI on one hand and of smelter and power plant by Nalco on other would be synergised more efficiently through the joint venture," he observed.
Khater Massad, CEO RAK Investment Authority (RAKIA), Chairman, RMMI and Advisor to H.
Mr Madhu Koneru, Managing Director, RMMI said, "Our mission is to establish RMMI as a world-leading mining solutions provider in the metals and minerals industry through strategic investments across the entire mining value chain.
As part of the deal, TSCC's mines in Armenia will now be operated under RMMI.
In the next two years, RMMI plans to build a concentrate plant in South Armenia's Larneshan region to process both copper and polymetallic ores into concentrates.
On February 18 RMMI signed a Memorandum of Understanding (MoU) with the government of South Sumatra province, Indonesia, which covers the entire mining-to-export chain of coal industry and developing a world class integrated industrial and logistics infrastructure including rail transport corridor, deep water sea port to handle bulk and container cargoes.
RMMI is setting up a world-class copper and cobalt smelter plant in the Katanga region of Congo at an initial investment of $200 million.
Madhu Koneru, managing director, RMMI, said: "These acquisitions will allow us to get a foothold in the world's largest resource for copper and cobalt.