UC Russal to build smelter in RI

United Company Russia Aluminum Company (US Russal), Russia?s largest aluminum producer, plans to build a smelter in West Kalimantan to refine and process bauxite into alumina, Kontan daily reported on Thursday.

The paper quoted Oleg Deripaska, CEO of Russal, as saying that his company requires about 2 million tons of alumina per year, of which 800,000 tons are supplied by Australia?s Rio Tinto, and the remainders from various sources around the world. He said that Indonesia has the potential to become one of the alumina suppliers.

Deripaska said that Russal plans to build a bauxite smelter with a capacity of 1.5 million tons per year, and investment of between US$1.5-1.8 billion in West Kalimantan. The company is currently in talks with potential local partners that would supply the required bauxite ores.

In 2007, Russal signed a heads of agreement with Indonesian?s state-owned miner PT Aneka Tambang for a similar project, but which did not go through. Antam Corporate Tri Hartono said that his company has not been contacted by Russal for the new planned project. Antam is currently building a $2 billion chemical grade alumina smelter in Kalimantan in partnership with Japan?s Showa Denko KK. (*)