Antam wants Alumina plant project to start operation in 2021

Petromindo|Boim

State-controlled mining firm PT Aneka Tambang Tbk (Antam) said that its smelter grade alumina project in Mempawah, West Kalimantan, can start production in 2021 if construction can start next year, Bisnis Indonesia reported on Monday.

The paper quoted Antam President Director Arie Prabowo Ariotedjo as saying that the alumina plant will have production capacity of 2 million tons per year, to be developed in two stages, each with capacity of 1 mtpa.

He said that feasibility study for the planned project is currently in progress, and hopefully can be completed in March or April of next year, to be followed with construction process, which will take about three years to complete. If every goes smoothly, at least the first unit can start production in 2021, he added.

Antam is teaming up with state-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum) and China Aluminum Corporation (Chinalco). Antam and Inalum are expected to have at least 51 percent interest in the project, with estimated investment of US$1.4 billion. While the three have signed MoU on the planned project, it is not yet clear when they have already signed formal joint venture agreement including on the distribution of ownership of the project.

Alumina output from the plant will be used as raw material for aluminum production by Inalum which plans to double its production capacity to 500,000 tons per year from the current 260,000 tons. (*)