Indopura and Hainan to invest US$700m in Batam

Indonesian miner PT Indopura Resources and China-based miner Hainan Joint Enterprise Business Service Co Ltd recently stated they plan to jointly invest in bauxite and chemical grade alumina (CGA) refinery in Batam, Bisnis.com reported.

The value of the investment is estimated to be at US$700 million, backed by commercial bank China Construction Bank International (CCBI).

M Arief Winata, Managing Director of Indopura Resources stated that the planning and design stages was completed approximately one year ahead, currently going through the process of feasibility studies that include engineering, procurement and construction (EPC) conducted by GAMI, an EPC contractor subsidiary of Chalco (China Aluminum Company).

"CGA refinery is aimed at meeting market demand from China and Japan. Alumina powder has a huge market demand in both countries," he said, adding that construction of the refinery is scheduled to start in 2014.

Once completed, Indopura Resources will be able to produce 1 million tons of CGA (alumina powder) per year from 2.7 million tons of raw materials. Alumina powder is widely used as a base for cosmetics, toothpaste, detergents, including the main raw materials for Smelter Grade Alumina (SGA).(*)