MIND ID Starts Development SGAR Luxury Phase II Early Next Year

President Director of BUMN Mining Industry Holding MIND ID, Hendi Prio Santoso (Photo: Maria Trisnawati/VOI)

MEMPAWAH - The Smelter Grade Alumina Refinery (SGAR) Phase 1 project in Mempawah, West Kalimantan, has successfully carried out its first bauxite injection.

President Director of BUMN Mining Industry Holding MIND ID, Hendi Prio Santoso said the development of SGAR Phase II will begin in early 2025.

For this reason, he targets the settlement of investment decision (FID) by the end of 2024.

"Phase two is in the finalization stage of planning to get the FID. That is planned at the end of the year so that development planning in 2025, mid-2025 God willing, has begun to be built," he said when met in Mempawah, quoted Wednesday, September 25.

With the start of development in 2025, he estimates that phase II will be completed in 2027.

Hendi said, in phase I, this smelter has a production capacity of 1 million tons of alumina per year.

During the construction of phase I, it is known that it only uses 100 hectares (ha) of the total 500 ha land prepared.

Later this land will also be built aluminum smelters with a production capacity of 600,000 tons per year.

Just so you know, the construction of the SGAR Phase I cost an investment of 941 million dollars, plus Rp700 billion to build road infrastructure.

He ensured that the development of SGAR Phase II would be cheaper than Phase I because it did not have to build a power plant.

"And in phase 2, our estimate is around 900 million dollars. But later the aluminum smelter will be around 2 billion dollars," he said.