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Adaro to build $728m ‘green aluminum’ smelter
The smelter, which will process alumina into aluminum, is slated to run on electricity from solar and hydropower plants.
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The logo of PT Adaro Energy is seen in an undated photo. (Reuters/File)
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oalmining giant PT Adaro Energy plans to build a US$728 million aluminum smelter that will run on electricity from renewable sources as it seeks to tap into the growing global supply chain for green-labeled products.
The publicly listed company said in a statement on Thursday that subsidiary PT Adaro Aluminium Indonesia would build the smelter at the upcoming Green Industrial Park in Bulungan, North Kalimantan. The facility will process alumina into aluminum.
“We are optimistic that global demand for aluminum products will rise, especially for cables, batteries and chassis,” said Adaro vice president director Ario Rachmat at a letter of intent signing ceremony on Tuesday.
He said the company also expected to supply aluminum to planned solar panel and electric vehicle (EV) producers at the park.
Read also: Green industrial park in N. Kalimantan begins construction
Adaro did not name its smelter development partners, except for saying they were “domestic as well as international partners with a track record [...] in the aluminum industry.”
The company also did not mention a timeline but noted that, “in the next phase of production and development,” the smelter would run on electricity from hydropower and solar power plants.
