East Kutai regent Isran Noor said Wednesday that a Dubai-based company and an Indian aluminum producer had started the development of an aluminum smelter in Muara Wahau, East Kutai, East Kalimantan.
In addition to the smelter, the two companies — Mineral, Energy, Commodities (MEC) Coal and National Aluminum Co. (Nalco) — would also set up a power plant with a total capacity of 1,400 megawatts and 142 kilometers of railway track connecting Muara Wahau and a port in Lubuk Tutung, Isran reported.
“The total investment for the project reaches US$5.6 billion. They have started the development and we hope that by the end of 2012, the smelter can begin operating with a total capacity of 500,000 metric tons per year,” he told reporters after a discussion on coal mining in Jakarta.
The smelter would be built near the coal mining site of PT Tekno Orbit Persada, a subs...