Chalieco confirms BAI’s alumina project has entered production

By Dominikus

China Aluminium International Engineering Corporation Ltd. (Chalieco) has officially confirmed that the Smelter Grade Alumina Refinery (SGAR) project, owned by PT Borneo Alumina Indonesia (BAI) in Mempawah, West Kalimantan Province, has successfully begun production. The 1-million-ton-per-year metallurgical-grade alumina facility, which is Indonesia’s first state-owned alumina refinery, completed its commissioning and entered operation on December 30, 2024, following the injection of bauxite slurry into the dissolution system. Chalieco served as the main EPC contractor for the project.

The startup process, which involved reaching the target temperature and ensuring the stability of all critical systems, was successfully completed within 24 days. A formal ceremony was held on January 23, 2025, to mark the production of the first batch of alumina—an important milestone in Chalco International’s global project portfolio.

The SGAR Phase I project is designed with an annual alumina production capacity of 1 million tons, processing approximately 3.3 million tons of bauxite each year. This facility is a significant step in Indonesia’s mineral downstream strategy, which aims to increase alumina self-sufficiency and reduce reliance on foreign markets. The refinery was developed with an estimated investment of $830 million and is a joint venture between two Indonesian state-owned companies: PT Indonesia Asahan Aluminium (40%) and PT Aneka Tambang Tbk (60%).

As a national strategic project, the SGAR refinery is poised to strengthen Indonesia’s position in the global aluminum industry and contribute to the nation’s industrialization efforts.

Beyond Phase I, BAI is planning the development of SGAR Phase II in Mempawah, which will also have a production capacity of 1 million tons of alumina. This phase will be integrated with a planned aluminum smelter, which will have a production capacity of 600,000 tons per year.

Editing by Reiner Simanjuntak