July 17 (Bloomberg) -- National Aluminium Co., which last month cut production because of a coal shortage, plans to import 100,000 metric tons of the fuel to prevent another disruption at a time when prices of the lightweight metal are near a record.

The company, India's biggest alumina maker, will purchase thermal coal from countries including Indonesia in two months, Chairman C.R. Pradhan said in a phone interview from the eastern city of Bhubaneswar. Last month, it bought 30,000 tons at an average 8,000 rupees ($186) a ton, he said.

Aluminum Corp. of China Ltd. and 19 producers in the Asian nation last week pledged to cut output by as much as 10 percent because of a power shortage, sending the metal to a record last week. Production at National Aluminium fell 30 percent for six days in June after supplies from Coal India Ltd. to its 960- megawatt power plant were disrupted by a strike.

``Shutting down operations will create problems, which we want to avoid at any cost,'' Pradhan said. ``By importing we can avoid the troubles that we encountered earlier.''

Coal used to fire power plants will average $180 a ton next year, compared with a previous forecast of $140 a ton, Macquarie Group Ltd. said last week, citing ``structural shortages'' caused by Chinese and Indian demand and delays in mine expansions.

Overseas Mines

That's spurred Indian companies including Tata Power Co., the biggest non-state generator, and JSW Energy Ltd. to secure fuel supplies abroad. India and China, the world's two fastest growing major economies, need fuel to meet a doubling in energy demand by 2030, according to the International Energy Agency.

``Electricity problems are a global issue, more so in China,'' Pradhan said July 10. ``This year we've seen stoppages because of power disruptions.''

National Aluminium, which produces 345,000 tons of the metal and 1.6 million tons of alumina annually, is developing a thermal coal mine with 2 million tons of reserves to secure fuel supplies. Power makes up about 30 percent of costs for aluminum smelters.

The company needs 14,000 tons of coal daily to run its smelter and alumina refinery at full capacity, Pradhan said. Two tons of alumina is used to make a ton of the metal, used to make parts in planes and cars.

To contact the reporter on this story: Debarati Roy in Mumbai at droy5@bloomberg.net.

Last Updated: July 17, 2008 03:42 EDT