Malaysia?s Press Metal plans alumina smelter in Kalimantan

Malaysia?s aluminum producer Press Metal Bhd plans to build an alumina smelter in Kalimantan with estimated investment of US$800 million, reports said on Wednesday.

Benny Wahjudi, a special staff to the Indonesian Minister of Industry, told the press that Press Metal is currently reviewing two alternative locations, Central or West Kalimantan, for the planned smelter, which will have a capacity of between 800,000 ? 1 million tons per year.

Speaking after a meeting with visiting top officials of Press Metal Group at the ministry, Benny said that the Malaysian firm will get the bauxite raw material from IUP miners in Kalimantan which could no longer export the raw material following the export ban introduced in January.

If all the necessary permits have been completed, Press Metal plans to launch ground breaking at the end of the year, with construction estimated to be completed within a year, Benny said, adding that the entire alumina output would be exported to Press Metal?s aluminum plant in Sarawak. (*)