The Smelter Grade Alumina Refinery (SGAR) project in Mempawah, West Kalimantan, is nearing completion and is scheduled to begin commercial operation (COD) by February 2025.
This significant development is part of Indonesia’s broader industrial downstreaming program, aimed at adding value to domestically processed mining commodities.
Corporate Secretary of MIND ID, Heri Yusuf, highlighted that the downstreaming initiative, promoted by the government over recent years, aims to enhance the value of mining commodities processed within Indonesia.
This not only increases the market value of these commodities but also boosts state revenue and stimulates national economic growth.
To support this initiative, MIND ID has accelerated the completion of key strategic projects, with the SGAR project being a notable example.
“As a state-owned enterprise, MIND ID is committed to supporting the government by expediting strategic projects, thereby strengthening Indonesia’s downstreaming program and maximizing its benefits for the prosperity of all Indonesian people,” Heri said in a media statement on Wednesday, August 14, 2024.
The SGAR project, with a completion progress of approximately 97 percent, will enter the commissioning phase in September 2024.
The smelter, owned by a consortium consisting of PT Indonesia Asahan Aluminium (Inalum) and PT Aneka Tambang (ANTM) through PT Borneo Alumina Indonesia (BAI), is expected to reach COD in February 2025.
The two MIND ID members have invested up to US$830 million (Rp13.1 trillion) into the SGAR project. Upon completion, this refinery is expected to produce 1 million tons of alumina annually.
The project is also anticipated to have a direct positive impact on the local economy by creating up to 1,000 jobs.
In addition to the SGAR project, MIND ID is also advancing other strategic initiatives, such as a new smelter from Freeport Indonesia capable of refining 1.7 million tons of copper concentrate annually.
This project represents an investment of US$3.67 billion (Rp58 trillion) and will be the largest single-line smelter in the world.
MIND ID has also entered into a joint venture with CATL to establish an upstream battery ecosystem, which includes building a battery factory.
Furthermore, MIND ID is working on developing an industrial park, expected to become a hub for electric vehicle manufacturers in Indonesia.
Looking ahead, MIND ID has several key programs planned for the coming year, including the expansion of the aluminum smelter, enhancement of coal conveyor systems, expansion of tin chemical and tin soldier capacities, and the development of primary tin in block #1 and block #2.
These initiatives are expected to further the company’s mission in line with its state-mandated objectives.
