Inalum to build $2b alumina smelter

State-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum) plans to develop a US$2 billion alumina smelter to stop dependency on imported alumina raw material as it seeks to expand production.

Investor Daily reported on Wednesday that Inalum is also planning to develop a $30 million calcined petroleum coke plant.

?We?re still conducting feasibility study for the two projects, in the hope that the two could be operational sometimes in 2019-2021,? said President Commissioner Agus Tjahajana.

He said that the company was hoping to be able to get the bauxite raw material for the production of alumina from state-owned miners such as PT Aneka Tambang Tbk, while the raw material for the calcined petroleum coke is expected to come from Dumai.

Inalum currently imports about 500,000 tons of alumina per year. Alumina is a key raw material for the production of aluminum ingots, Inalum?s main product.

Agus said that the company?s alumina consumption is projected to increase as it seeks to expand production capacity of aluminum to meet growing domestic demand.

Inalum?s production this year is estimated to reach 250,000 tons, and is projected to increase to 300,000 tons next year. (*)