PT Adaro Energy Tbk (ADRO) through its subsidiary has pocketed financing (financial close) for the construction of its aluminum smelter with an acquisition value of IDR 2.5 trillion.

As is well known, Adaro Minerals Indonesia (ADMR) intends to develop an aluminum smelter and related supporting facilities under PT Kalimantan Aluminum Industry (KAI).

The aluminum smelter project with a capacity of 500,000 tons per year is located in an industrial area in North Kalimantan, Indonesia.

In the second quarter of 2023, KAI has also completed land preparation, earthworks and jetty construction for the project. KAI is also continuing to build temporary dormitories for employees and other infrastructure facilities.

President Director and Chief Executive Officer Garibaldi Thohir admitted that this financial close step was a good stepping stone for his company.

"Fulfillment of the financing obtained for the aluminum smelter and related supporting facilities is a significant event in Adaro's business expansion into the mineral processing sector," Said State Owned Minister Erick Thohir, quoted on Wednesday (23/8/2023).

It is also committed to seeking an optimal balance between shareholder returns and business expansion.

It is known, in the first half of 2023, the production volume of ADRO and its subsidiary companies reached 33.41 million tonnes, up 19% from the same period last year. The sales volume target for 2023 ranges from 62-64 million tonnes.

Meanwhile, sales of metallurgical coal through its subsidiary, ADMR, increased 42% to 1.82 million tonnes in 1H23. Previously, ADMR targeted sales volume in the range of 3.8-4.3 million tonnes this year.

Image Source: ADMR

Source: www.cnbcindonesia.com/ADMR Kantongi Rp 25 T Buat Bangun SmelterAluminium