Harita expects alumina smelter to start production in February

By Thomas Sembiring

Bauxite mining company PT Harita Prima Mineral Abadi, a subsidiary of IDX-listed mining firm PT Cita Mineral Investindo Tbk, said that construction of its alumina smelter project in Ketapang, West Kalimantan, continues to make progress with commercial production of the first phase expected in February of next year.

Harita through PT Well Harvest Winning Alumina Refinery, a joint venture with China?s Hongqiao Group, is developing a 4 million tons per annum alumina smelter in four phases, with the first phase 1 million tons per annum capacity expected to be completed end of this year.

?The progress of construction (of the first line) has reached percent,? said Erry Sofyan, President Director of Harita Prima on Tuesday. ?The first line with capacity of 1 million tons (per year) will start production in February 2016,? he added.

Erry said that the company hopes to complete construction of the other three lines between October 2017 and 2021.

Erry, who is also Head of the Indonesian Iron and Bauxite Ores Entrepreneurs Association, has urged the government to allow limited export of bauxite ores to help miners raise funds to finance smelter construction.

The government introduced export ban on mineral ores early last year, pushing miners to build domestic smelters in a bid to generate greater value added from the country?s mineral commodities. Following the export ban, many miners could no longer have income, thus creating difficulties to finance the required domestic smelters.

Minister of Energy and Mineral Resources Sudirman Said stated Monday that the government would not ease the current export ban policy, although acknowledging that there has been discussions recently for such possibility.

Editing by Reiner Simanjuntak