Inalum Targets Smelter Alumina Project Start Producing By 2021

INDUSTRY.co.id - Jakarta - PT Inalum (Persero) targets a smelter alumina project with Antam Tbk (ANTM) and Chalco to produce in 2021, following construction scheduled to begin in the second half of next year.

The construction period of the project is estimated to take 3 years, so that the residential facility located in Mempawah Regency, West Kalimantan, will start production in 2021.

"We have to complete the stage of the bankable feasibility study, which is expected to be completed by March this year," said Director Inalum, Budi Gunadi Sadikin, at the second semester of this year. Jakarta, Friday (19/1/2018).

The project with a capacity of 1 million tons of smelter grade alumina (SGA) per year requires US $ 600 million to US $ 700 million. Under the initial plan, the smelter will have a capacity of up to 2 million tons of SGA per year.

"If it goes to phase 2, the funds needed can reach US $ 1.4 billion, this project is rather big and there must be a loan," said Budi.

About the selection of partners, continued Budi, Aluminum Corporation of China Limited (Chalco) has qualified in the field of efficient technology and qualified. "In addition, the Chinese company is willing to have a minority stake," he said.

Meanwhile, Antam's President Director, Arie Prabowo Ariotedjo added, to work on the project, it together with Inalum and Chalco formed a joint venture named PT Borneo Alumina Indonesia.

"Antam and Inalum share ownership will reach 70 percent, while Antam expects to have at least 30 percent stake," Arie said.

Later, the resulting SGA will be purchased directly by Inalum. The Inalum alumina requirement is currently around 500,000 tons per year to be processed to 250,000 tons to 260,000 tons of aluminum per year. (Imq)