PT Adaro Minerals Indonesia (ADMR), a subsidiary of PT Adaro Energy Indonesia (ADRO), has unveiled the latest developments regarding Adaro MetCoal Companies (AMC) operating in Central Kalimantan and the aluminum smelter project in North Kalimantan.
Adaro MetCoal is a company focused on coal mining production, while the aluminum smelter is a project developed by ADMR through its subsidiary, PT Kalimantan Aluminium Industry (KAI).
Director of Adaro Minerals, Wito Krisnahadi, said Adaro MetCoal and the aluminum smelter are ADMR’s two largest assets that have shown promising performance, citing Adaro MetCoal’s excellent performance despite challenging average selling prices (ASPs) for coal last year.
“We are grateful that Adaro MetCoal performed well last year despite the coal ASP not being as favorable as the previous year. However, we achieved over performance in terms of production volume and sales, resulting in a good sales performance for Adaro MetCoal last year,” Wito said on Wednesday, March 20, 2024.
Regarding the aluminum smelter project, Wito said that ADMR is actively working on the construction and expects the smelter to commence production next year with a capacity of up to 500,000 tons of ingots (aluminum bars) per year in the first phase.
“We are currently focused on strengthening the foundations and have started the electrification process, especially for power generation,” Wito said.
In the future, Wito continued, ADMR aims to explore other opportunities in different minerals to support the downstreaming initiatives advocated by the government.
Therefore, the company led by conglomerate Boy Thohir is actively studying other minerals that have significant potential to contribute to Adaro’s revenue and bottom line.
The aluminum smelter is the largest aluminum project in Indonesia, situated on a 600-hectare land in the green industrial zone managed by PT Kalimantan Industrial Park Indonesia (KIPI).
ADMR, through its subsidiary KAI, controls the smelter project estimated to have an investment value of US$2 billion.
In May 2023, KAI secured financing totaling IDR 2.5 trillion (US$ 1.58 billion) to construct the aluminum smelter.
The financing achievement marks ADMR’s commitment to focus on construction to ensure the commercial operation date (COD) is achieved by 2025.
