Harita Group builds smelter in West Kalimantan

Harita Group's PT Well Harvest Winnung Alumina Refinery (WHM) starts building bauxite smelter in Kendawang, Ketapang Regency with total investment US$ 1 billion.

"Smelter construction is divided into two phases. First phase is for 1 million ton a year of capacity and expected to operate in 2015. Second phase is for an additional 1 million ton to be 2 million tons a year and scheduled to operate in 2017," WHM President Director Lie Feng Hai.

CEO Harita Group Lim Gunawan Haryanto said the company owns 25 percent of WHM's shares. "The majority shareholder is China Hong Qiao Group Ltd," he said. He added that the alumina produced in the smelter to supply domestic alumina demand, particularly for PT Inalum in North Sumatra.

Liem Hok Seng, Executive Director PT Cita Mineral Investindo Tbk, which owns 25 percent of WHM's shares, said the 30 percent of funding for the project is provided from internal sources. "The rest is obtained from third party, such as banks," he said.

Vice Minister of Energy and Mineral Resources (MEMR) Susilo Siswoutomo welcomed Harita Group's plan to build smelter. "Government will provide incentives, such as freeing import tax for certain equipment," he said.

Editing by Tri Subhki Rakhmatullah