JAKARTA (RambuEnergy.com) – Alumunium Corporation of China Ltd (Chinalco) in cooperation with Indonesian mineral firms PT Aneka Tambang Tbk and PT Inalum move ahead with their plan to develop smelter-grade alumina plant in Mempawah (SGA), West Kalimantan with an estimated investment of US$1.5 billion -US$1.8 billion.
The smelter plant is projected to have the capacity to produce 1 million tons of alumina per annum. The construction of the smelter is estimated to be completed within three years.
The three companies on Monday (Nov 13) announced a plan to set up a joint venture (JVC) to operate the smelter, in which Indonesian partners holding 51%.
The development of the grade smelter plant is aimed at utilizing the bauxite raw materials owned by Aneka Tambang. Antam has proven reserves of 100 million tons of bauxite, which is the 8th largest in the world.
Inalum currently has a production capacity of 260,000 tons per annum, while national demand reached 800,000 tons. The growth of aluminum per year reached 8%.
The Mempawah grade alumina project is projected to be completed in 2019.
The announcement was released on Monday on the sideline of Indonesia-China Energy Forum. A number of memorandum of understanding (MoUs) were signed to boost investment between the two nations. (*)