PT Borneo Alumina Indonesia, a joint venture between state-owned PT Indonesia Asahan Aluminum (Inalum) and PT Aneka Tambang Tbk (Antam), has officially launched its Smelter Grade Alumina Refinery (SGAR) Phase II project in Mempawah, West Kalimantan. This will complement the existing SGAR Phase I, which has an annual production capacity of 1 million tons of alumina.
SGAR Phase I is expected to begin full operations in Q1 2025, bringing total alumina production capacity at the Mempawah facility to 2 million tons per year once Phase II is completed.
The SGAR Phase II project is currently finalizing its Bankable Feasibility Study (BFS) and Final Investment Decision (FID), with completion expected in 2025. These documents will pave the way for the start of the Engineering, Procurement, and Construction (EPC) phase.
Dilo Seno Widagdo, Portfolio and Business Development Director of state-owned mining holding company MIND ID, said the project will help meet the growing national demand for aluminum, which stands at 1.2 million tons per year.
Read also: Antam: Bankable FS for SGAR Phase II to be completed by 2025
“We are strengthening the supply chain to support Indonesia’s manufacturing sector and ensure future aluminum production,” Widagdo said in a statement on Monday, March 30.
He also emphasized the need for additional bauxite reserves, which currently total 158.83 million tons, to meet future production needs.
The expansion of SGAR Phase II is projected to contribute up to 5.5% to Indonesia’s economic growth in 2025, while also supporting job creation and regional economic development.
As part of its downstream strategy, Inalum plans to build a new aluminum smelter to process alumina from SGAR, further strengthening the domestic aluminum supply chain.
Inalum President Director, Ilhamsyah Mahendra, stated the first alumina shipment from Mempawah to Inalum’s smelter in Kuala Tanjung, North Sumatra, is expected by the end of April 2025.
Currently, Inalum’s smelter has a production capacity of 275,000 tons of aluminum per year, with all output prioritized for domestic consumption.
Editing by Reiner Simanjuntak
