Adaro Minerals Unit Targets Aluminium Smelter Start-up by End of 2025
Fri 19 Sep 2025, 14:24 PM
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PT Adaro Minerals Indonesia (ADMR) projects that its aluminium smelter—being developed through subsidiary PT Kalimantan Aluminium Industry (KAI)—will begin phased operations by the end of 2025, opening the door to potential dividend distributions from 2025 results, supported by positive catalysts from the smelter’s ramp-up.
“The aluminium smelter under construction will enter its first pot operation stage by year-end,” ADMR Director Mahardika Putranto said in a disclosure to the Indonesia Stock Exchange (IDX) on Thursday, September 18, 2025.
Upon completion, the facility will have an initial production capacity of up to 500,000 tons of aluminium ingots per year, with plans to gradually expand to 1.5 million tons annually in subsequent development phases.
Construction has reached the final stage of main steel structures, with installation progressing on key potroom equipment, anode systems, and supporting infrastructure. Jetty loading and unloading equipment has been installed, and worker housing is largely complete.
To support the project, ADMR’s subsidiary PT Alamtri Indo Aluminium (AIA) injected fresh capital into KAI. On June 30, 2025, AIA increased its investment by IDR 947.49 billion (USD 57 million), acquiring 947,497 new shares. In total, AIA has committed up to IDR 4.91 trillion in equity.
Located in the Kalimantan Industrial Park Indonesia (KIPI) in North Kalimantan, the project aligns with the government’s downstreaming policy and addresses the domestic aluminium supply gap. While ADMR’s core business remains coal mining and trading, its expansion into aluminium smelting is expected to support the manufacturing, renewable energy, and electric vehicle industries—reinforcing its role in Indonesia’s National Strategic Projects (PSN).
Alongside the smelter’s promising outlook, management is considering dividend payments for 2025. “Management will assess the company’s ability to distribute dividends to shareholders annually,” Mahardika noted, while emphasizing that debt repayment and capital expenditures remain priorities before any distributions.
ADMR, which listed on the IDX in 2022, paid its first dividend from 2024 earnings, distributing IDR 47.82 per share with a 4.64 percent yield. The payout came from a net profit of USD 436.6 million in 2024, slightly down 0.99 percent from USD 441.02 million in 2023.
ADMR shares gained momentum after the smelter update, rising 3.30 percent over the past week. By comparison, shares of group peers PT Adaro Energy Indonesia (ADRO) fell 1.19 percent, while PT Adaro Andalan Indonesia (AADI) slipped 0.71 percent.
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