The SGAR Luxury Project Can Increase The Added Value Of Bauxite To 16 Percent

President Director of PT Aneka Tambang Tbk (ANTAM) Niko Kanter. (Photo: Maria Trisnawati/VOI)

Smelter Grade Alumina Refinery (SGAR) in collaboration with PT Antam and PT Inalum through PT Borneo Alumina Indonesia (BAI) is claimed to be able to increase the added value of bauxite up to 16 times.

President Director of PT Aneka Tambang Tbk (ANTAM), Niko Kanter said, this 6-fold increase is compared to exports of raw materials.

Niko detailed, by processing bauxite into alumina in SGAR, the resulting added value increased significantly, which was about 4-5 times when converted into alumina, and up to 16 times when further processed into aluminum.

"So the value is really large," said Niko when met after the first bauxite injection players in SGAR Mempawah, West Kalimantan, Tuesday, September 24.

Niko said, this increase in added value will automatically also increase the selling price of alumina and aluminum produced.

Niko also said that with this new smelter, Antam, who previously relied on bauxite exports, could then downstream and secure Indonesia's foreign exchange potential.

"So with this inauguration (SGAR) it proves that this bauxite chain will be used for added value and downstreaming is in Indonesia," Niko continued.

Not only that, SGAR said this, he said, became a tangible manifestation of the synergy between SOEs. It is known that the smelter located in Mempawah Regency will use bauxite raw materials originating from Antam's mine.

Later, the alumina product produced by this smelter will be the main raw material for PT Inalum which produces aluminum.

The project integrates Antam's bauxite production with national aluminum needs, reduces its dependence on alumina imports and supports the domestic aluminum industry.

"The SGAR project is a clear proof of Indonesia's economic transformation through downstreaming, which will strengthen Indonesia's position in the global aluminum market," said Niko.