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Adaro unit plans $1.1 billion capex, mostly for smelter
PT Adaro Minerals has announced plans for some US$1.1 billion in capital expenditure (capex) this year, the lion’s share of which is for an aluminum smelter.
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President Joko “Jokowi” Widodo (center), PT Adaro Energy president director Garibaldi Thohir (left) and Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan (right) attend the inauguration of PT Kalimantan Industrial Park Indonesia's Green Industrial Park at Tanah Kuning, in Bulungan, North Kalimantan, on Dec. 21, 2021. (President secretariat/BPMI Setpres/Laily Rachev)
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oal mining giant PT Adaro Energy’s coking coal subsidiary PT Adaro Minerals has announced plans for around US$1.1 billion in capital expenditure (capex) this year, most of which will go into an aluminum smelter project.
Adaro Minerals finance director Heri Gunawan said on Tuesday that the remainder of the earmarked funds would be used to increase mining infrastructure capacity.
The publicly listed company said it aimed to use equity funding and bank loans for its capex.
The aluminum smelter, worth $728 million, will be located at the Green Industrial Park in Bulungan, North Kalimantan, and is expected to begin commercial operations in the first quarter of 2025.
It will run on electricity from renewable sources as the company seeks to tap into the growing global supply chain for green-labeled products.
The Green Industrial Park will draw power from soon-to-be-operational hydropower and solar power plants and will host producers of high-tech and precision products, such as semiconductors, lithium-ion batteries, solar panels, industrial silicon and “green aluminum” – aluminum made using low-emission processes.
Read also: Adaro to build $728m ‘green aluminum’ smelter
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