Russian Miner Sets Eyes on Indonesian Alumina
22 September 2014 15:06 WIB
TEMPO.CO, Jakarta - Russian-based aluminum company, Rusal—the largest in the world, has its eyes on Indonesia's mineral resources, aiming to get a share in the latter country's prospective aluminum market.
"Indonesia, whose aluminum exports weren't significant five years ago, is now the biggest exporter in the world," said Maxim Sokov, CEO of En+ Group, last weekend. En+ Group controls Rusal, which produces nine percent of the world's aluminum and alumina.
Sokov is also interested in Indonesia's bauxite prices, which are cheap. And almost all of them are exported to China. "It's only sold for about US$30 per ton," he said.
Sokov said that in the last five years, Indonesia's Mineral and Coal Law No.4/2009, which prohibits the exports of unprocessed minerals, had pushed up bauxite prices to US$56 dollars per ton. He predicts prices will continue to rise to at least US$60 per ton, and may even reach US$75 per ton.
En+ Group takes advantage from the opportunities created by the Mining Law to tap into Indonesia's market. "We partner with PT Arbaya Energy to open a bauxite mine and process them into alumina in West Kalimantan," said Sokov.
If all goes well, the group would invest some US$1.5 billion in the country. "Usually 30-70 percent (comes from) out own funds," said Sokov.
BHM (MOSCOW) | FAIZ NASHRILLAH | MARIA YUNIAR