Bintan Alumina, China?s Nanshan to soon start smelter construction

PT Bintan Alumina Indonesia (BAI) and its partner China?s Nanshan Group plans to start next month the construction of a planned US$1 billion alumina smelter on Bintan Island, Riau Islands Province, according to Minister of Industry MS Hidayat, who met with BAI top officials in Jakarta on Thursday.

He said that construction has been delayed for two months as the company was still in the process of completing land acquisition. ?I?ve been invited to visit the smelter location. I plan to go there in April,? Hidayat said.

He said that the smelter will have a capacity of 2.1 million tons per year. He added that in addition to smelter, Nanshan will also invest in other areas such as roads, ports, and other infrastructure facilities. If all are realized, the total investment could reach $5 billion.

BAI President Director Santony said that construction of the smelter was targeted to be completed in 2017. The output of the smelter will be sold at home and overseas, he added.

Elsewhere, Hidayat said that the government expects nine smelters to be constructed this year. So far there are 55 smelter proposals submitted to the Ministry of Energy and Mineral Resources, he said. (*)