Progress has Reached 80%, Alumina Smelter is Optimistic That It Will Operate by the end of 2024

Batu Bara, 15 Februari 2024 - PT Indonesia Asahan Aluminum or INALUM is optimistic that the Mempawah Smelter Grade Alumina Refinery (SGAR) can operate by the end of 2024. This was stated after the government stated that the Mempawah SGAR was re-included as one of the National Strategic Projects in December 2023.

INALUM Corporate Secretary Mahyaruddin Ende expressed this optimism and hoped that everything would go according to plan and hoped to continue to receive support from all stakeholders.

"As a state-owned entity which is part of the Indonesian Mining Industry Holding, INALUM is optimistic that SGAR Mempawah can operate between Semester II/2024 and 2025. We hope that the entire process goes according to plan, and we of course ask for support from all stakeholders so that the goals "The dream of downstream bauxite-aluminum can be realized," said Mahyaruddin.

The Smelter Grade Alumina Refinery in Mempawah is a strategic project carried out collaboratively by INALUM and PT ANTAM Tbk through INALUM's subsidiary, namely PT Borneo Alumina Indonesia (BAI). SGAR Mempawah is part of INALUM's corporate action in creating an integrated aluminum industry ecosystem from upstream to downstream. INALUM hopes to continue to get support from all stakeholders so that Indonesia's dreams can be achieved quickly and national aluminum downstreaming can quickly be realized.

Currently, the Mempawah SGAR construction has reached over 80%, with a target of completion in 2024. The SGAR project is what will connect the supply chain between the bauxite ore mineral (West Kalimantan) and the aluminum smelting plant (INALUM). If it is operational, it is calculated that it can produce 1 million tons of alumina per year (raw material 3.3 million tons of bauxite per year). It is targeted to start production in 2024 and reach full production capacity in 2025.

The project, which is divided into phases I and II, has an investment value of around US$ 1.7 billion. The plan is that each project will increase the company's alumina production capacity to the level of 1 million tonnes annually, with an estimated bauxite raw material of 3.3 million tonnes per year.

SGAR can increase the added value of downstream programs. At SGAR Mempawah, the bauxite that has been obtained will be processed into alumina domestically without having to send bauxite raw materials abroad, which results in reduced operational costs. As is known, alumina is the main ingredient in making aluminum ingots, such as alloys, bollets, bars, ceramics and other daily products. At the same time, it can increase labor absorption to above 1000 human resources.

Several other corporate actions were carried out by INALUM in order to increase production capacity in response to the high potential of the national aluminum market which currently has a demand of up to 1 million tons. These projects include the Reduction Furnace Technology Upgrading Project in 2023, Kuala Tanjung Smelter Optimization which is targeted to increase production capacity in 2024-2025 and the IAA Aluminum Remelt Diversification Project.