The Facts of SGAR Mempawah

Batu Bara, 20 Februari 2024 - PT Indonesia Asahan Aluminum or INALUM and PT Aneka Tambang Tbk are collaborating to build the Mempawah Smelter Grade Alumina Refinery (SGAR) as a step in downstreaming the bauxite commodity in Indonesia. However, why is this critical at this time in Indonesia?

INALUM Corporate Secretary Mahyaruddin Ende said that downstreaming bauxite commodities into alumina in Indonesia is a state mandate as well as a national strategic step in creating an integrated upstream-downstream supply chain that will provide a greater contribution to the country.

"Mempawah SGAR is a manifestation of the implementation of the downstream mandate of the mining industry in Indonesia, in this case the bauxite commodity. With Mempawah SGAR, it is hoped that an integrated upstream-downstream supply chain will be created from bauxite commodities to daily commodities that we enjoy every day, one of which is aluminum. "We hope that this project will be completed soon, will operate soon, will make a contribution soon," said Mahyaruddin.

Smelter Grade Alumina Refinery or SGAR began construction in 2020 in Mempawah Regency, West Kalimantan, about 100 km from Pontianak City. Once operational, this alumina smelter will connect the supply chain between the bauxite ore mineral (West Kalimantan) and the aluminum smelter (INALUM). Once completed, the alumina products will be distributed through Pelindo's Kijing Port.

Bauxite is the main raw material for the alumina products that will be produced by this smelter. Indonesia has the 6th largest bauxite reserves in the world. This commodity will be mined directly using modern and green mining by PT ANTAM Tbk in the West Kalimantan area, 30 km from the smelter.

Next, the alumina smelter will carry out extraction and refinery of the bauxite which is called the Bayer Process and produce alumina. Alumina or aluminum oxide is a chemical compound of aluminum and oxide, with the chemical formula Al2O3, which is the material most widely used as an ingredient in various types of metallurgical materials, the chemical industry, the automotive industry and the cosmetics industry. In the context of aluminum production, 6 tons of bauxite that is refined will produce 2 tons of alumina, and 2 tons of alumina will produce 1 ton of aluminum.

The strategy promoted by INALUM and ANTAM in continuing work on SGAR Phase II is to search for strategic partners to work on SGAR Phase II. This is needed to meet the brownfield and greenfield expansion needs of aluminum smelters. It is hoped that this project is also considered to be able to spur the economy in West Kalimantan Province, especially in Mempawah Regency, with the potential to increase regional income, provide employment opportunities both directly and indirectly, as well as community empowerment programs around the project location.