Medan (ANTARA) - PT Indonesia Asahan Alumunium (Inalum) is presently constructing an alumina refinery plant in Mempawah, West Kalimantan, whose project's development was launched by State-owned Enterprises Minister Rini Soemarno on April 4, 2019.

Executive Advisor of PT Inalum Oggy A. Kosasih stated in Medan, North Sumatra, on Saturday that the alumina refining plant, once ready, has the potential to save Inalum's raw material costs reaching US$200 million.

Moreover, it can reduce the exports of raw minerals and lower dependence on imports to source raw materials for producing aluminum.

For its development, Inalum has partnered with PT Antam Tbk through their joint venture subsidiary PT. Bristol Alumina Indonesia (BAI) as a company tasked with constructing the alumina refinery plant.

Kosasih explained that construction of the alumina refining plant offers myriad advantages in the form of being a replacement for alumina imports for which Inalum has been making ongoing efforts to realize domestic production of alumina products and capitalize on the value of PT Antam Tbk's bauxite reserves.

"It is then planned to build an integrated upstream to downstream industry chain for the extraction of alumina from bauxite to produce aluminum and is expected to boost the economy of the local area where alumina refining plants are built," he elaborated.

On the occasion, Kosasih stated that since the change in status to become a state-owned company (BUMN) on December 19, 2013, the company had undergone several adjustments and changes.

With Inalum's status change to being a BUMN, the company is expected to remain committed to developing the country, particularly after being appointed as the holding company of the mining industry.

PT Inalum has been the holding firm of the mining industry since November 27, 2018, and has succeeded in acquiring 51.23 percent of the shares of PT Freeport Indonesia on December 21, 2018.

Thus, Inalum's operating area is restricted not only to Kuala Tanjung and North Sumatra Paritohan but also extends to the remote areas of the nation that cover the PT. Antam Tbk operating area in Pomala, Southeast Sulawesi; East Halmahera, Maluku; Pongkor, West Java; and Sanggau, West Kalimantan.

PT. Bukit Asam Tbk's operating area lies in Tanjung Enim, South Sumatra; while Timah Tbk's operations are in Kundur, Karimun, Singkep, Bangka Belitung, Banjarmasin, and Cilegon; and PT Freeport Indonesia's operations are in Tembagapura, Papua.

Translator: Eliswan Azly
Editor: Suharto
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