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Jakarta Post

China, Indonesia sign $695m deal for West Kalimantan alumina smelter

  • Norman Harsono

    The Jakarta Post

Jakarta   /   Fri, January 17, 2020   /  02:58 pm
The Jakarta Post Image
Development plan for a smelter-grade alumina refinery in Mempawah, West Kalimantan.( Adji)

Indonesian and Chinese companies have signed a US$695 million contract to construct the Mempawah alumina refinery in West Kalimantan, as Indonesia moves to add value to its mineral products and create a domestic mining industry value chain. Indonesian state-owned construction firm Pembangunan Perumahan (PP) and China Aluminum International Engineering Corporation Limited (CHALIECO) signed the contract on Jan. 11 in Beijing with the smelter’s owner, Borneo Alumina Indonesia (BAI). Construction of the facility is expected to be complete by 2022. Smelter construction began in December 2019, although BAI’s shareholders initially expected it to begin in late 2018 to meet a 2021 completion date. BAI is a joint venture between the Aluminum Corporation of China Limited (Chalco), state-owned aluminum producer Indonesia Asahan Aluminium (Inalum) and state-owned mining company Ane...