NALCO develops bauxite smelter in Kalimantan

National Aluminium Company (NALCO), an India-based company, is building a US$5.6 billion smelter complex to process bauxite into aluminium in Muara Wahau, East Kalimantan, according to East Kutai Regent Isran Noor.

The complex will include a smelter, a 1,400 MW power plant and a 142 km rail track linking Muara Mahau and Lubuk Tutung. The rail track is intended to smoothen the transport of the bauxite raw material and the aluminium product between the site and the port. The bauxite will be supplied from India.

?Because they would need a great amount of energy, a power plant with the capacity of 1,400 MW will also be constructed. Up to 200 MW of the produced electricity will be distributed to the public in surrounding areas,? says Isran, adding that the construction of the plant, rail track and smelter is underway with completion scheduled for 2012.

Previously, Thamrin Sihite, Director General for Mineral and Coal at the Ministry of Energy and Mineral Resources, said the ministry was looking to encourage the development of at least 4 smelters for the processing and refining several mining products.

A ministerial regulation on value added mining products is currently being prepared, he added. Thamrin also deliberated that the smelter did not always have to be built by the mining company. The proposed scheme is through cooperation, both with domestic and international partners. (giok)