NEW DELHI (Commodity Online): In a move to rescue the PSUs from the impact of global recession, the government is mulling a joint venture between National Aluminium Co and Hindustan Copper Ltd.

Nalco has money and Hindustan Copper has the best copper mines in the country. So there is an obvious synergy between the two.

Hindustan Copper, India’s only integrated copper producer, had posted a net loss of Rs 10.3 crore in 2008-09, as sales plummeted nearly 34% on slump in demand and prices.

The company barely managed to return to profit during the March quarter, but must do more to generate enough resources for expanding its mines output.

More than 90% of its revenue comes from sales of copper cathodes and wire rods. The company imports a chunk of its requirement for the raw material to make these products, which makes it vulnerable to volatile prices. Hindustan Copper has projects in Jharkhand, Rajasthan, Madhya Pradesh and Maharashtra.

Nalco on the other hand is facing a similar predicament, as aluminium prices have fallen considerably. It does have funds but will need them for its expansion work within India and overseas.

Nalco currently produces 960MW electricity, which it uses entirely to run its alumina refinery and metal smelter in Orissa. It plans to increase the power capacity to 1,200MW to cater to expanded refinery and metal production.