Jakarta (ANTARA) - Minister of State-Owned Enterprises Rini Soemarno continued to encourage PT Inalum (Persero) Mining Industry Holding to increase the value of the country's mining products through downstreaming. During her working visit to China on Friday (17/5), Soemarno met several prospective Inalum strategic partners, one of them being Zhejiang Huayou Cobalt Company Ltd., the world's largest producer of battery materials used for electric vehicles.

Soemarno said cooperation was being explored so that Mining Industry Holding could have strategic partners in terms of technology and development in order to accelerate downstream mining in Indonesia.

"The Indonesian mining sector has great potential. By cooperating with strategic partners, Inalum Mining Industry Holding can access the technology needed for downstreaming to develop the domestic mining processing industry and improve the value of Indonesia's mining products," Soemarno said in a press release in Jakarta on Friday.

She also encouraged SOEs to increase downstream products in the country, stating that apart from increasing product value, downstreaming would ultimately encourage job creation.

Meanwhile, PT Inalum (Persero) Managing Director Budi G. Sadikin said the exploration of cooperation with Huayou was being done because of Huayou's experience in the mining industry, especially integrated cobalt, nickel and lithium minerals. Huayou has also successfully managed the downstreaming of mines in China.

In line with the mandate of the Mining Industry Holding to carry out downstreaming, Inalum continues to aggressively seek strategic partners with good experience, who can provide access to technology.

Budi explained that Mining Industry Holding through Inalum and ANTAM also plans to build a plant with High Pressure Acid Leaching (HPAL) technology and Rotary Kiln-Electric Furnace (RKEF) through cooperation with Huayou. These two factories can push downstream nickel to emerge as the raw material for lithium batteries.

Since mid last year, Huayou has planned to build a nickel smelter in Indonesia to meet the demand for these commodities in the battery industry.

The company will invest 1.83 billion US dollars in Indonesia and is currently looking for local partners.

"This exploration is expected to produce a concrete partnership with Inalum to advance the mining downstream industry in Indonesia," said Chen Xuehua, Huayou President Director.

Also part of the working visit were the Deputy of Mining, Strategic Industry and Media of the Ministry of BUMN Fajar Harry Sampurno; Deputy Minister of Financial Services, Services Survey and Consultant of the Ministry of BUMN Gatot Trihargo; President Director of PT Antam Tbk Arie Ariotedjo; President Director of PT Pertamina (Persero) Nicke Widyawati; and BNI Managing Director Achmad Baiquni.


Translator: Eliswan Azly
Editor: Fardah Assegaf
Copyright © ANTARA 2019