UC Rusal, Arbaya sign MoU on bauxite mining, alumina production
Wednesday, February 26 2014 - 01:24 AM WIB
Russia?s aluminum giant UC Rusal and Indonesian leading energy firm PT Arbaya Energy signed a memorandum of understanding (MoU) on Tuesday to enter into a strategic partnership in the exploration and mining of bauxite and production of alumina in West Kalimantan
Visiting CEO of UC Rusal Oleg Deripaska and President Director of PT Arbaya Suryo Bambang Sulistyo inked the agreement at Ritz Carlton Hotel.
Bambang Sulistyo, who is also chairman of the Indonesian Chamber of Commerce and Industry (Kadin), said that the total investment of the project was projected to be about US$2.5 to US$3 billion.
He added that the planned smelter will have a capacity of 1.5 million tons of alumina per year. PT Arbaya will supply the required bauxite ores from its mine in West Kalimantan.
?Rusal expects the precise location of the refinery can be determined in October, then, the ground breaking will be done,? he said, referring to the smelter project which is going to be completed within 2 to 3 years period.
Editing by Reiner Simanjuntak