BUMN (State-owned Enterprises) Mining holding PT Indonesia Asahan Aluminium (INALUM) has been asked to develop an aluminium smelter in North Kalimantan, with a capacity of 1 million tons.
Inalum CEO Budi Gunadi Sadikin said that he had met with Coordinating Minister for Maritime Affairs Luhut Binsar Panjaitan last week to discuss the plans to build the smelter and an hydroelectric power plant (PLTA) by the Kayan River in North Kalimantan.
“I have been asked to accelerate the development of the PLTA in North Kalimantan. Mr Luhut wants it built as soon as possible, in five years if necessary. We hope the development can commence next year,” Mr Sadikin told Kontan.co.id.
Inalum CFO Oggy Kosasih added that the smelter development has not commenced yet due to uncertainties regarding power supply to the smelter.
Inalum has signed a memorandum of understanding (MoU) in 2015 with the Governor of North Kalimantan for 600 hectare of smelter development.
“We will commence the development of the smelter if we have a power source. But there has been nothing the past two years,” Mr Kosasih said.
He also added that Inalum has set a target to finish the smelter in three years with a two-stage development plan. In the first year Inalum will develop a smelter with a capacity of 500,000 tonnes, and the remaining capacity will be added in the next two years.
Source : IDN Financials
12 June 2018