JAKARTA: State-owned aluminium producer PT Indonesia Asahan Aluminium (Inalum) aims to complete a feasibility study and final investment decision on the second phase of its smelter-grade alumina refinery (SGAR) in Mempawah, West Kalimantan this year.
The two documents will become the foundation for initiating the engineering, procurement and construction processes.
Previously, Inalum had aimed to complete the two documents by the end of 2024 and begin construction this year.
Currently, Inalum and state-owned miner PT Aneka Tambang (Antam) have completed the first phase, with the two companies aiming for the smelter to begin full operation shortly after the end of the first quarter this year.
The first phase of the SGAR is expected to produce one million tonnes of alumina annually.
Alumina is the main material used to produce aluminium ingots.
Once completed, the second phase will double the smelter’s production capacity to two million tonnes per year.
Inalum and Antam are members of state-owned mining holding company Mind ID along with state-run miner PT Bukit Asam and PT Timah, as well as Freeport Indonesia and Vale Indonesia, of which the government holds the majority of shares.
Mind ID’s director of portfolio and business development, Dilo Seno Widagdo, called the project “a strategic move” to enhance the added value of Indonesian minerals.
He said that the project has the potential to increase investment flow, create employment opportunities and encourage economic equality in the country.
The firm expects the SGAR to fulfill national aluminum demand, which currently stands at 1.2 million tonnes annually. — The Jakarta Post/ANN
