MIND ID, or Mining Industry Indonesia, a state owned company holding continues to make significant progress on the Smelter Grade Alumina Refinery (SGAR) project in Mempawah, West Kalimantan, to support the downstream processing of bauxite to aluminum.
This project, owned by PT Borneo Alumina Indonesia (BAI) and executed by the China Aluminum International Engineering Co Ltd (CHALIECO) consortium in collaboration with PT PP, aims to bridge the supply chain between bauxite ore in West Kalimantan and aluminum smelting plants under PT Inalum.
SGAR in Mempawah, West Kalimantan, is designated as a National Strategic Project (PSN), reflecting its strategic importance for the downstream mining industry, particularly in bauxite.
Despite initial delays, MIND ID’s management has taken innovative initiatives to expedite the project, ensuring it aligns with the new progress curve. This will enable SGAR to regain its place on the PSN list, pending the finalization of economic ministerial regulations.
The advancement of the SGAR project signifies Indonesia’s commitment to enhancing its domestic mineral processing capabilities and fostering economic growth.
SGAR is poised to have an annual alumina production capacity of 1 million tons, using an estimated 3.3 million tons of bauxite raw material each year.
According to Heri Yusuf, the Corporate Secretary of MIND ID, the project, with an investment of US$ 831 million, is set to commence alumina production in Q4 2024, with full plant performance expected by Q1 2025. This development will allow Indonesia to independently process bauxite into aluminum, reducing dependence on other nations.
The first phase of SGAR Mempawah, currently at 58% completion, targets an 80% construction phase by the end of 2023. Full capacity is anticipated by 2025.
SGAR, a bauxite ore smelting and processing plant for alumina, holds immense significance as Indonesia currently relies on neighboring countries for bauxite ore processing. Once operational, SGAR will complete the bauxite-to-aluminum production chain.
The project offers multiple benefits, including enhanced value for Antam, cost savings for Inalum, and economic development for the community, particularly in Mempawah. It also contributes to increased tax revenue for local governments and involves cooperation with local state-owned enterprises, such as PT Pelindo for the use of Kijing International Port.
Heri Yusuf emphasizes that SGAR is a tangible example of MIND ID’s role, with its shareholders including Inalum and Antam, both key players in bauxite and alumina value chains.
