Inalum plans to spend up to $3b for expansion
Thursday, March 23 2017 - 01:11 AM WIB
Courtesy of Inalum
State-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum) plans to allocate up to US$3 billion in capital expenditure (capex) over a five-year period until 2021 to help finance expansion programs.
Inalum Finance Director Oggy Achmad Kosasih said on Wednesday the company plans to boost production capacity from around 240,000 tons per annum currently to 300,000 tpa next year, and 500,000 tpa in 2020.
He added that as part of the capacity expansion, the company will also apply new technology that would require less electricity. He said that the current technology used by the company is from the 1980s.
Oggy said that much of the planned capex will be used to finance the development of a smelter grade alumina (SGA) project in Mempawah, West Kalimantan Province, in a joint-venture with IDX-listed mining firm PT Aneka Tambang Tbk (Antam). The smelter, with an initial production capacity of 1 million tons per year, is targeted to be completed in the fourth quarter of 2019. The capacity of the plant will be expanded to 2 million tpa later on.
?Much of the capex will be for the SGA project, and the remainder for other businesses,? he said, pointing out among other things on the company?s plan to develop a wire rod production facility, which is currently under feasibility study stage, but is envisaged to be completed before 2021.
Editing by Reiner Simanjuntak