MIND ID through its subsidiary, PT Inalum, targets to
immediately complete the construction of the Phase I Smelter Grade Alumina Refinery
(SGAR) in Mempawah, West Kalimantan, in the second semester of 2024.
The construction of the SGAR phase I project, which began in
2019, can initially be completed and start operating in 2023. But now, the
target of completing the bauxite ore processing plant into alumina-aluminum
base material, is targeted to be completed in the second half of 2024.
Work on the bauxite to alumina smelting plant project has now reached 58% and is targeted to reach 80% of the construction period by the end of 2023. After SGAR Mempawah phase I is completed, the commercial operation target will begin to run effectively in 2025.
Corporate Secretary of BUMN Holding Mining Industry MIND ID
Heri Yusuf said the alumina produced by SGAR Mempawah phase I will later become
raw material for aluminum smelters owned by members of the MIND ID Group, PT
Inalum in Kuala Tanjung has a capacity capable of accommodating alumina up to
1 million kilo tons per annum (KTPA). The amount of alumina could be 500,000
tons of aluminum.
"This is a challenge for MIND ID through our
subsidiary, PT Inalum, to immediately complete SGAR Mempawah phase I. When later Once this bauxite smelter has officially operated, we can connect the entire
bauxite business chain into aluminum, both for domestic and export market
needs," Heri said in his official statement on Wednesday (13/9).
The US$ 830 million project is expected to be a solution to
the problem of breaking the bauxite business chain into aluminum. According to
Heri, currently, PT Antam's bauxite mining products are sent first to
neighboring countries to be smelted into alumina, and then transported again to
aluminum smelters.
"After it is completed, it is hoped that through SGAR
Mempawah, it can connect the bauxite business chain into aluminum, which is one
of the main materials for EV (electric vehicle) batteries in Indonesia."
he said.
After SGAR Mempawah phase 1 is completed, members of the
MIND ID PT Inalum Group, through its subsidiary, PT Borneo Alumina Indonesia (PT
BAI), plan to continue the work on SGAR Menpawah phase II with the potential
for additional alumina production capacity of up to 2 million tons.
PT BAI is a joint venture company with 60% share ownership
of PT Inalum and PT Antam 40%. "Both are subsidiaries of MIND ID, so PT
BAI can be called the grandson of MIND ID," he said.
The strategy carried out by Inalum and Antam in continuing
the work on SGAR Phase II involves finding strategic partners to work on SGAR
phase II. This is needed to meet the brownfield and greenfield
expansion needs of aluminum smelters. MIND ID continues to provide more
value for Indonesia, one of which is through downstream efforts of the mining
industry.
In addition, Inalum has also resubmitted the SGAR Mempawah
phase I project to be redesignated as one of the national strategy projects
(PSN). Previously, the government revoked the SGAR Mempawah work protection
from the PSN list through the issuance of Coordinating Minister for Economic
Affairs Regulation Number 9 of 2022 in July 2022.
"When it enters again as a PSN, it will support faster
project completion," he said.
The revocation was based on the project, which is estimated
to cost an investment of USD 1.7 billion, delayed for quite a long time due to
problems from EPC consortium holders, namely state-owned enterprises from
China, China Aluminum International Engineering Corporation Ltd. (Chalieco) by
75%, and the rest is PT Pembangunan Perumahan Tbk. (PTPP).
Image source: ANTARA
Source: www.alinea.id/MIND ID targetkan pembangunan SGAR Mempawah rampung pada 2024
