TEMPO.CO, Jakarta - PT Aneka Tambang (Antam) Tbk and PT Indonesia Asahan Alumunium (Inalum) have signed a joint venture agreement (JVA) to form a joint venture to build a grade smelter alumina refinery (SGAR) plant, PT Inalum Antam Alumina (IAA). The smelting plant wil be built in Menpawah, West Kalimantan.
In the joint venture, Antam will supply bauxite from the company’s mine. Whereas Inalum will absorb the smelting yield as alumina raw materials.
“Smelter grade alumina refinery is one of a number of projects being developed by Inalum,” said Winardi Sunoto, President Director of Inalum, at the SOE Ministry office, Thursday, April 14, 2016.
Availability of domestic supply of aluminum raw materials will reduce Inalum’s dependence to alumina imports and save foreign-exchange reserves. Winardi said 51 percent of IAA shares will be owned by Inalum and Antam. Of that amount, Inalum will own 60 percent, while Antam will own 40 percent.
The other 49 percent of the shares will be owned by China Aluminium Company. “Local shares is 51 percent minimum, meaning that we are the majority [shareholders]. Or 55 percent to 45 percent,” he said.
The SGAR plant with a production capacity of 2 million tons per annum will be built in stages. First stage will see the construction of a plant with a capacity of 1 million tons. In development stage, the aluminum smelting plant will also has a capacity of 1 million tons.
At present, Inalum has aluminum smelting capacity of 250,000 tons and needs a supply of 500,000 tons of alumina per annum. Inalum is planned to increase its capacity to 500 thousand tons by 2020. To achieve it, Inalum needs at least 1 million tons of alumina every year for raw materials.