China?s Shandong Nanshan to build aluminum smelter in RI

China?s second largest aluminum producer Shandong Nanshan Aluminium Co. Ltd. will begin construction of smelters, that would process bauxite into alumina and aluminum ingots, in Indonesia in the first quarter of this year, The Jakarta Post and Bisnis Indonesia dailies reported Friday.

Indonesia?s Industry Minister MS Hidayat, who last week visited the firm?s integrated processing facilities in China, said on Thursday that it would also build a 300-megawatt power plant to fuel operation of the smelters, and a port to serve the smelter, set to be located on Bintan Island, Riau Islands province. Total investment for the smelters and the infrastructure facilities is estimated at US$5 billion.

?The firm is now finalizing the land acquisition for the smelter and will begin building in April,? he told reporters at his office.

The development of the smelter may be completed within two years and, once the smelter begins operation, it will process bauxite into alumina, and alumina to aluminum ingots, Hidayat added.

Nanshan?s hoard chairman said late last year that it had teamed up with PT Mitra Karsa Utama, which holds a 5 percent stake in the joint venture, to develop the smelter. The bauxite to feed the facility would come from several mines in Riau.

The facility will he designed to generate 2.1 million tons of alumina and 570,000 tons of aluminum ingots each year. A portion of the total output would be exported to several countries, including China, Japan and the United States, while the rest would be allotted for domestic sales. (*)