KONTAN.CO.ID –JAKARTA.The BUMN mining holding or Mining Industry Indonesia (MIND ID) is still working on a number of strategic projects even though in the midst of the Covid-19 pandemic, one of which is the Smelter Grade Alumina Refinery (SGAR).
This project is a collaboration between PT Indonesia Asahan Aluminum (Inalum) and PT Aneka Tambang Tbk (ANTM).Inalum’s share ownership composition in SGAR is recorded at 60%, while the remaining 40% is owned by ANTM.The two of them formed a subsidiary called PT Borneo Alumina Indonesia (BAI).
President Director of MIND ID Orias Petrus Moedak said that the project, which is located in Mempawah, West Kalimantan, will connect the supply chain between bauxite minerals from ANTM’s IUP and Inalum’s aluminum smelter.
“So far, Indonesia often exports raw bauxite which is processed abroad and then re-exported here.We should be able to process it ourselves, he said in the Hearing Meeting (RDP) with Commission VI DPR RI, Tuesday (29/9).
Currently, the SGAR project is in the land acquisition stage which has reached 96.6%, early stage work is at the 78.71% level, and is seeking loans in the form of bridging loans and project financing.
Apart from the pandemic factor, the project also has other obstacles.For example, stagnant negotiations related to land acquisition with the community and constraints on shareholder support for accelerating capital and loan payments to PT BAI as the direct manager of the SGAR project.
The SGAR project itself has a somewhat jumbo investment value of US $ 831 million and involves 881 workers.”The construction period lasts for 2 years and operates in the first quarter of 2023,” added Orias.
Later, when it operates, SGAR will be able to produce 1,000 Ktpa of alumina.MIND ID also has the opportunity to receive revenue contributions from SGAR of US $ 285 million per year and profits of US $ 4.6 million per year.