Indonesia Asahan Aluminium (Persero) or Inalum and Aneka Tambang (Persero), Tbk (ANTM IJ) plans to build Smelter Grade Alumina Refinery (SGAR). Through the joint venture Borneo Alumina Indonesia (BAI), both are planning to build SGAR in Bukit Batu village, district of Mempawah, West Kalimantan.
The groundbreaking is made Minister of State Owned Enterprise (SOE), Rini M. Soemarno, Chairman of DPD RI Oesman Sapta Odang, members of the House of Representatives Commission VII Katherine A Oedoen and Maman Abdurahman, Deputy Governor of West Kalimantan Ria Norsan, and Gusti Ramlan.
In addition, West Kalimantan Kapolda Inspector Pol Didi Haryono, and Kasdam Brigjen TNI Alfret Denny D Tuejeh, and also Inalum President Director Budi G Sadikin, President Director ANTM Arie Prabowo, and Director BAI Bambang Wijanarko was also attend. Rini explains that the presence of the development of processing industry in the course of bauxite into alumina should have benefits for the economy and the well-being of local people.
“Synergy of State Owned Enterprise are very necessary to build industrial chain from upstream to downstream integrated. I very much welcome this groundbreaking, “he said in a press release on Monday (8/4). The origin of the idea, Indonesia has the sixth largest bauxite reserves in the world. This project will reduce the export of raw minerals while the import dependency for the source of raw material for the production of aluminum.
Budi G Sadikin, Director of Inalum adding the groundbreaking purification plant is part of an effort to encourage mining holding credentials downstream mine products. “Later Inalum, which has the only aluminum purification plant in Indonesia will get supplies of alumina from within the country. The savings do Inalum can reach USD200Mn, “he added.
Arie Prabowo Ariotedjo, President Director of ANTM convey project SGAR is a strategic development project for Indonesia. As a company with a significant source of bauxite, management strives to add value to a commodity owned minerals. The project will be managed BAI, and above acres 288 hectares in three villages in the course of Mempawah, West Kalimantan.
The project has an initial capacity of SGAR 1 million tonnes per year and come with steam power plant (Pembangkit Listrik Tenaga Uap/ PLTU) 3×25 MW. To build such prestigious projects, the investment required is estimated at USD850Mn including IDC and working capital. The expectation at the beginning of the year 2022, this project can already operate.