MIND ID or mining Industry Indonesia, is committed to creating a better future and providing added value for Indonesia in line with its vision and mission.
As a mining industry holding in Indonesia, MIND ID, along with all its members, consistently strives to provide added value for Indonesia through the Strategic Mineral Downstream Program.
In the mining industry downstream development sector, MIND ID is currently working on several Strategic Projects through its group members. One of them is the construction of a Smelter Grade Alumina Refinery (SGAR) in Mempawah, West Kalimantan.
Its worth noting that this project is owned by PT Borneo Alumina Indonesia (BAI) and is undertaken by the China Aluminum International Engineering Co. Ltd. Consortium (Chalieco) in collaboration with PT PP.
The SGAR is intended to connect the supply chain between bauxite ore in West Kalimantan and the aluminum smelting plant owned by PT Inalum. In the future, SGAR is expected to have a production capacity of 1 million tons of alumina per year, with an estimated 3.3 million tons of bauxite raw material per year.
The project, with an expenditure of USD 831 million, is set to commence production of its first alumina in Q4-2024 and achieve full plant performance in Q1-2025.
This will enable Indonesia to independently process bauxite into aluminum, reducing dependency on other countries.
The SGAR Mempawah Phase 1 construction project has now reached 58 percent completion and is targeted to reach 80 percent construction by the end of 2023. SGAR Mempawah Phase 1 is also expected to be at full capacity by 2025, said Heri Yusuf, the Secretary of the State-Owned mining Industry Holding MIND ID, in a written statement on Thursday (2/11/2023).
SGAR is a smelting and processing plant for turning bauxite ore into alumina, a raw material for aluminum production.
The presence of SGAR is crucial, as Indonesia currently relies on neighboring countries for bauxite ore processing into alumina. When SGAR is operational, the entire production chain from bauxite to aluminum will be complete.
There are several multiplier effects, not only for the downstream processing of bauxite into aluminum but also for the resilience of aluminum bauxite and many other benefits, he explained.
In addition to downstream processing of bauxite into aluminum, the presence of SGAR also adds value to Antam and provides savings for Inalum.
Indonesia will also benefit significantly from the presence of SGAR in Mempawah, showcasing independence in the process of bauxite to aluminum processing. This is accompanied by an improvement in the economy of the local community, especially in the city of Mempawah, along with tax revenue for the local government and collaboration with local state-owned enterprises, particularly with PT Pelindo in the use of the Kijing international port.
SGAR is a manifestation of MIND IDs real role because we know that Inalum and Antam are shareholders in SGAR. Antam is one of its commodity holders (bauxite), and Inalum is responsible for its downstream processing (SGAR), he stated.
The SGAR project in Mempawah, West Kalimantan, is, in fact, one of the projects included in the National Strategic Project.
Image source >>> MNC Media
Source >>> https://www.idxchannel.com/economics/kejar-hilirisasi-bauksit-grup-mind-id-kebut-proyek-smelter-alumina
Source https://djakarta-miningclub.com