Luxury Bauxite Smelters Start Operating, PT BAI Review Exports To China To Europe

Smelter Mempawah (Photo: Antara/HO-Inalum)

JAKARTA - President Director of PT Borneo Alumina Indonesia (BAI) Leonardo Manurung said that his party is targeting the export potential of alumina products produced from Smelter Grade Alumina Refinery (SGAR) phase I Mempawah which has started to inject bauxite.

Just so you know, the smelter from the collaboration between PT Aneka Tambang Tbk (Antam) and PT Indonesia Asahan Aluminum (Inalum) will produce 1 million alumina per tofu. and will provide raw materials for the manufacture of aluminum which will be produced by Inalum.

Currently, Inalum's need for alumina commodities for aluminum production is 600,000 tons per year.

"Inalum as our shareholder, of course, those who need alumina need approximately 600,000 tons of alumina per year. Later we will hand over the rest, we will distribute them for needs, both domestically and for export," he said when met in Mempawah, quoted Wednesday, September 25.

Meanwhile, regarding the choice of export destination countries, said Leo, there are still various and do not have long-term contracts. However, Leo said that his party was reviewing export potential to China, Japan, and Europe.

"Of course China and several other European countries including Japan," added Leo.

Furthermore, regarding initial production, Leo said this smelter will produce 500 to 1,000 tons of alumina per day and will reach 3,000 tons per day when commercial operations in the first quarter of 2025.

"We fully dedicate our own production to inalum. We must meet the needs of the inalum," he said.

For information, this smelter is expected to start operating in the first quarter of 2025, with a full production target in the second quarter of the same year.

The project cost an investment of at least US$941 million with a production capacity of 1 million tons per year.