Glencore, RUSAL to build smelters in RI

Giant diversified-miner Glencore Xstrata CEO Ivan Glasenberg met with Minister of Industry MS Hidayat on Tuesday to express the company?s interest in building a nickel ore and bauxite smelters in Indonesia as the government plans to ban mineral ores export starting January of next year, reports said on Wednesday.

Speaking to reporters following the meeting, Hidayat said Glencore has already carried out feasibility studies for the planned smelters, but did not disclose the size of the investment, nor the locations of the planned smelters. He only said that the planned smelters would be likely set up in the eastern part of Indonesia, and that Glencore with team up with a local partner to operate them.

Separately, the world?s biggest aluminum producer United Company RUSAL also expressed interest to build a domestic alumina smelter. RUSAL CEO Oleg Deripaska met with Coordinating Minister for the Economy Hatta Rajasa on Tuesday to convey the company?s plan to build refineries and smelters in West Kalimantan that would produce about 1.8 million tons of alumina each year in a combined investment of up to US$6 billion.

The Russian company would team up with local partners to build and operate the refineries. Several years ago, RUSAL announced its plan to join forces with state-owned mining firm PT Aneka Tambang (Antam) to establish a $1 billion bauxite refinery in Tayan, West Kalimantan, but the plan was canceled due to several reasons, including the world economic crisis. Antam then proceeded with Japanese partner Showa Denko to build the smelter, which went on trial production in October.(*)