Indonesian state miner Aneka Tambang will apply next week for a permit to export 6 million tons of nickel ore for a year, a company spokesman said on Friday (10/03). (JG Photo/Jurnasyanto) Sukarno)

Antam, Inalum Woo Foreign Investors for West Kalimantan Smelter Project


OCTOBER 15, 2015

Jakarta. State-controlled diversified miner Antam and state aluminum maker Indonesia Asaha Aluminium, or Inalum, are currently wooing foreign businesses for a proposed smelter-grade alumina refinery in West Kalimantan.

According to a filing to the local stock exchange on Thursday, the companies have sent out invitations to "world-renowned aluminum companies experienced in manufacturing bauxite ore into alumina," with potential investors from China, Russia and United Arab Emirates.

"Antam's deal with Inalum to create the joint venture with a strategic partner is a follow-up to our agreement signed last July. The construction of the smelter-grade alumina refinery will greatly boost the value of Antam's bauxite reserves," Antam president director Tedy Badjuraman said in a statement on Thursday.

The plant, scheduled to start construction next year, will produce one million tons of smelter-grade alumina a year in its first phase, starting from 2019, and gradually increase to two million tons. At this higher capacity, it will require up to six million wet metric tons of bauxite ore every year, according to the companies.

"The synergy with Antam is one of our efforts towards sustainable growth through building Indonesia's upstream aluminum industry and integrating it to the downstream products in order to add value and increase our competitiveness," said Winardi Sunoto, the president director of Inalum, which currently produces up to 250,000 tons of aluminum ingot per year.