Cita Mineral to build $1 billion bauxite smelter in Kalimantan

PT Citra Mineral Investindo Tbk (CITA) plans to build a smelting plant to process its bauxite production into aluminium in West Kalimantan, with an estimated investment of about US$1 billion, Kontan newspaper reported.

The company?s corporate secretary Yusak Lumba Pardede said that the company established new subsidiary PT Kemakmuran Panen Raya in March to build and operate the smelter.

?The total investment for the smelter will reach about US$1 billion, and all will be covered by internal funds,? he said, adding that it was expected to begin operation in 2015.

CITA operates a bauxite mine covering 3,200 hectares in Kendawangan, West Kalimantan. The bauxite production is exported to China. However, the exports had been stopped since the government restricted exports of mineral ores in May. ?Since May we have stopped production and had to lay off about 300 of 3,000 workers for efficiency,? he added.

Yusak estimated the export restriction would result in the decline in net profits by between 30 percent and 50 percent.(*)