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