Development Has Been 80 Percent, Mempawah Alumina Smelter Is Targeted To Operate By The End Of 2024

Illustration (Photo: Doc. Antara)

JAKARTA - PT Indonesia Asahan Aluminum or INALUM revealed that the progress of the construction of Mempawah Smelter Grade Alumina Refinery (SGAR) has reached 80 percent.

The smelter is targeted to be operational by the end of 2024.

For your information, the government stated that SGAR Mempawah was re-entered as one of the National Strategic Projects in December 2023.

INALUM Corporate Secretary Mahyaruddin Ende said that management is optimistic and hopes that everything will go according to plan and hopes to continue to get support from all stakeholders.

"As a BUMN entity that is part of the Indonesian Mining Industry Holding, INALUM is optimistic that SGAR Mempawah can operate between Semester II-2024 and 2025," he said in an official statement, Thursday, February 15.

"We hope that the whole process goes according to plan, and we of course ask for support from all stakeholders so that the goal of downstreaming bauxite-aluminum can be realized," he continued.

Mahyarudin said that the Smelter Grade Alumina Refinery in Mempawah is a strategic project that is carried out in collaboration by INALUM and PT ANTAM Tbk through an INALUM subsidiary, namely PT Borneo Alumina Indonesia (BAI).

SGAR Mempawah is part of INALUM's corporate action in creating an integrated aluminum industry ecosystem from upstream to downstream.

INALUM hopes that it will continue to gain support from all stakeholders so that Indonesia's ideals can be achieved immediately and national aluminum downstream quickly realized.

"The SGAR project will connect the supply chain between the bauxite ore mineral (West Kalimantan) and the aluminum smelting plant (INALM)," he explained.

If it is operational, it is calculated that it can produce 1 million tons of alumina per year (standard materials of 3.3 million tons of bauxite per year). It is targeted to start producing by 2024 and reach full production capacity by 2025.

The project, which is divided into phases I and II, cost an investment value of around USD 1.7 billion.

The plan is that each project will increase the company's alumina production capacity to the level of 1 million tons each year, with an estimated bauxite raw material of 3.3 million tons per year.

SGAR can make an increase in the added value of the downstream program. In SGAR Mempawah, the bauxite that has been obtained will be processed into alumina in the country without having to send bauxite raw materials abroad which will have an impact on reducing operational costs.

As is well known, alumina is the main ingredient in the manufacture of aluminum ingots, such as alloys, pellets, bars, ceramics, and other daily products.

"At the same time, it can increase the absorption of labor numbers up to a figure above 1,000 human resources," he said.