Inalum plans aluminum cluster in N. Kalimantan

Monday, June 26 2017 - 01:46 AM WIB

State-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum) plans to develop an aluminum cluster at the Tanah Kuning port and industrial zone in Bulungan Regency, North Kalimantan.

Director General of Industrial Zone Development at the Ministry of Industry, Imam Haryono told Antara on Thursday that the company had on June 6 signed a MoU with the North Kalimantan provincial administration for the planned aluminum cluster project in the province.

According to Imam, the aluminum cluster will comprise of aluminum ingot production facility with installed capacity of 500,000 -1 million tons per year, and downstream industries to produce wire rod with production capacity of 100,000 tons per year, and aluminum alloy with production capacity of 300,000 tons per year.

Imam said Inalum is waiting for the completion of a hydro power plant project in the province, to provide electricity supply to the planned aluminum cluster industry, in the first phase will require power supply of 800 MW.

North Kalimantan Governor Irianto Lambrie announced earlier this month following the signing of the MoU of Inalum?s plan to develop alumina downstream industries to capitalize on cheaper electricity supply provided by the huge hydro power potential in the province. He pointed out that the province has a potential to produce up to 20,000 MW of hydro electricity from local rivers. He added that a giant hydro power plant project (called Sungai Kayan PLTA) with capacity of 9,000 MW is currently under construction process by PT Kayan Hydro Energy, funded by Chinese investors. The construction started in 2014. (*)

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