PT Well Harvest Winning Alumina Refinery, a joint venture between PT Harita Group and China Hongqiao, plans to build a smelting plant to process bauxite into aluminum in Ketapang, West Kalimantan.
Harita's CEO, Lim Gunawan Hariyanto, said in Jakarta on Wednesday that construction of the smelting plant, which will be built with total investment of about US$1 billion, would begin this month.
Harita Group owns 30 percent shares and Hongqiao 70 percent in this joint venture.
Lim said that in the first phase of the smelting project, the joint venture would produce about 1 million tons beginning in the middle of 2015, with the second stage of the project would begin in 2016.
The alumina smelting grade produced by the joint venture would be used to supply the raw material needs of PT Indonesia Asahan Alumunium (Inalum) aluminum smelter in North Sumatra. The demand for alumina smelting grade has reached about 500,000 tons a year.