The propagation and interaction of two solitary waves with angular momentum in bulk nematic liquid crystals, termed nematicons, have been studied in the nonlocal limit. These two spinning solitary waves are based on two different wavelengths of light and so are referred to as two-color nematicons. Under suitable boundary conditions, the two nematicons can form a bound state in which they spin about each other. This bound state is found to be stable to the emission of diffractive radiation as the nematicons evolve. In addition this bound state shows walk-off due to dispersion. Using an approximate method based on the use of suitable trial functions in an averaged Lagrangian of the two-color nematicon equations, modulation equations for the evolution of the individual nematicons are derived. These modulation equations are extended to include the diffractive radiation shed as the nematicons evolve. Excellent agreement is found between solutions of the modulation equations and full numerical solutions of the nematicon equations. The shed diffractive radiation is found to play a much lesser role in the nonlocal limit than in the local limit.