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View all search resultsAdaro 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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C
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.
Ario noted that the smelter project aligned with Adaro’s plan to diversify into green industries and carry out government plans for the development of downstream commodity industries.
Construction of the green industrial park officially began on Tuesday with developers expecting to host producers of semiconductors, lithium-ion batteries, solar panels, industrial silicon and ‘green aluminum’, among other goods.
The park would draw power from solar power plants and coal-fired power plants for the first 10 to 15 years of operation, before switching to solar and hydropower, said Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan on Tuesday.
Adaro president director Garibaldi Thohir will lead the consortium of Indonesian companies developing the green industrial park, which also has investors from China and the United Arab Emirates (UAE).
State-owned Inalum is the only aluminum producer in Indonesia at the moment.
