Friday, 20 May 2022 | 17:31 WIB

Inalum Can Save US$ 200 Million from Smelter Grade Alumina Refinery

Inalum Can Save US$ 200 Million from Smelter Grade Alumina Refinery (alatberat)

JAKARTA, NETRALNEWS.COM - State-owned mining holding company PT Indonesia Asahan Aluminum (Persero), also known as Inalum, and state-owned mining company PT Aneka Tambang Tbk have launched the Smelter Grade Alumina Refinery Project in Sungai Kunyit, Mempawah, West Kalimantan.

Minister of State-Owned Enterprises (SOE) Rini Soemarno, who was also present at the launching of the bauxite ore to alumina processing plant, said the smelter is expected to increase the added value of Indonesian mining products and reduce alumina imports.

It is known that Indonesia has the sixth largest bauxite reserves in the world. Until now, Indonesia does not have a bauxite processing plant to become alumina so that all of the bauxite ore is exported abroad, namely Japan and China.

Alumina, the raw material for aluminum production must be imported by Inalum from other countries such as Australia, China and India.

"This is really the commitment of the President to carry out the downstreaming of alumina. Because it is not right how come we have bauxite but we export it raw," explained Minister Rini in his statement on Friday (4/4/2019).

Rini also hopes that the completion of the smelter project can create new jobs and have a major impact on economic growth and the welfare of the people in the region.

Meanwhile at the same place, President Director of Inalum Budi G Sadikin said that the declaration was an effort to implement one of the mandates of the Mining Industry Holding.

"That is to encourage the downstreaming of mining products. Later Inalum, which has the only aluminum refining plant in Indonesia, will get a supply of alumina from within the country. The savings made by Inalum can reach US $ 200 million," he added.