By Romel S. Gurky
IDX-listed integrated mining firm PT Indika Energy Tbk (IDX: INDY) said that its bauxite mine in West Kalimantan Province, owned by indirect subsidiary PT Mekko Metal Mining, will start production this year.
“Mekko has a production capacity of 1 million tons per year and is expected to be fully operational in 2023,” INDY said in its recently published 2022 Annual Report.
The company said that Mekko owns an IUP-OP production operation mining business license for a 5,050-ha concession in Ngabang, Landak Regency, West Kalimantan Province. The concession has bauxite resources estimated at 30 million tons of washed bauxite and reserves of 5.7 million tons of washed bauxite.
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INDY through wholly owned subsidiary Indika Mineral Investindo acquired in September of last year 100 percent stake in PT Perkasa Investama Mineral (PIM), which owns Mekko and another company called PT Perkasa Alumina Indonesia, which is developing an alumina smelter in West Kalimantan. The acquisition forms part of INDY’s business diversification strategy as the company seeks to increase revenue contribution from the non-coal business.
The government plans to ban bauxite ore export starting June of this year.
Editing by Reiner Simanjuntak
