PT Adaro Minerals Indonesia Tbk (ADMR) reported the achievement of the development of a jumbo aluminum smelter in North Kalimantan. 

ADMR President Director Christian Ariano Rachmat said that through PT Kalimantan Aluminum Industry (KAI), ADMR is actively developing opportunities in the mineral sector, with a focus on downstream mineral processing. This business leads the transformation of the Adaro Group to support a green economy and pursue sustainable growth. 

"The construction of the aluminum smelter and its supporting facilities continues to show good progress. The project is expected to be completed in the third quarter of 2025, which is an important event in our efforts to support Indonesia's downstream initiatives in the green industrial area in Kaltara," he explained in a press release, Tuesday (31/10/2023). 

Following the signing of the loan facility agreement in Q2/2023, KAI is currently focusing on the pre-construction phase of the aluminum smelter project.

As of the end of Q3/2023, KAI has completed land clearing for the permanent mess, coastal jetty breakwater, and construction of supporting facilities such as the outdoor laydown warehouse, heavy equipment workshop, and batching plant.

KAI has also started the piling work for the foundation of the smelter area, as well as the construction of other supporting facilities, including the temporary camp, indoor warehouse, and brick factory. 

KAI has appointed all main contractors for the construction and installation of the aluminum smelter. Furthermore, in the fourth quarter of 2023 KAI will continue work to improve ground conditions and land leveling in the aluminum smelter area, as well as continue dredging, construction of heavy cargo, universal cargo, and berthing trestles for the jetty area.

For information, PT Adaro Energy Indonesia Tbk (ADRO) through its subsidiary PT Adaro Minerals Indonesia Tbk (ADMR) is developing an aluminum smelter through its subsidiary PT Adaro Indo Aluminum. 

Adaro carried out the aluminum smelter development process in the industrial area of PT Kalimantan Industrial Park Indonesia (KIPI), North Kalimantan. 

The overall investment value of the smelter development, including the power plant, reached USD 2 billion in the first phase, with a capacity of 500,000 tons per year. 

By investing in an aluminum smelter, ADRO hopes to help reduce aluminum imports, provide processing and added value to alumina, and increase state tax revenues.

ADMR Performance 

Meanwhile, ADMR posted revenue of USD 720.62 million or IDR 11.25 trillion (estimated exchange rate of IDR 15,625 per US dollar) as of September 2023. ADMR's revenue increased 8.12% from USD 666.48 million as of September 2022.

ADMR's cost of revenue as of September 2023 reached USD341.01 million, up from USD 251.5 million as of September 2022. ADMR's gross profit also fell to USD379.60 million compared to USD 414.88 million previously.

ADMR recorded a profit for the period attributable to owners of the parent entity of USD 250.50 million or IDR 3.91 trillion. ADMR's net profit fell 11.87% from the previous USD 283.36 million.

ADMR disbursed net cash flow for investment of USD 101.96 million as of Q3/2023, up from USD 7.45 million previously. However, cash and cash equivalents at the end of the period still rose to USD 581.88 million from USD 401.82 million previously.

Christian Ariano Rachmat said that ADMR's operating income grew due to a 38% increase in coal sales volume offset by a 21% decrease in average selling price (ASP).

ADMR's high-quality metallurgical coal products are sold to various steel producers in Japan, China, India, Indonesia, and South Korea. 

"ADMR's production volume as of September 2023 was up by 55% to 3.98 million tons, as a result of good machine availability and contractor performance. ADMR recorded overburden stripping volume of 13.81 million bcm, up 128% from 9M22, resulting in a 9M23 stripping ratio of 3.47 times," he explained. 

Coal sales volume reached 3.01 million tons as of Q3/2023, up 38% from 9 months 2022, putting the company in a position to achieve its 2023 target of 3.8 million-4.3 million tons.

Image source: ADMR

Source: www.market.bisnis.com/Update Adaro Minerals ADMR Soal Smelter Aluminium Di Kaltara