New $728M Aluminum Smelter to be Constructed in Borneo Island

SEATTLE (Scrap Monster): PT Adaro Aluminum Indonesia- a unit of Indonesian coal company PT Adaro Energy announced plans to build a new aluminum smelter in Borneo Island. The smelter will be built at an investment of $728 million, for which it has already signed a letter of intent.

The proposed smelter will be built in the Green Industrial Park Indonesia in North Kalimantan province. The industrial activities at the park will be powered using electricity from a 11,000-megawatt hydropower plant in the Kayan river. The project is cited as part of the company’s green transformation initiative. The smelter will be built in partnership with domestic and international partners, the company press release said.

Ario Rachmat, Vice President Director, Adoro noted that the company is optimistic of a notable rise in global demand for aluminum products, especially for cable, battery and chassis, in the years to come. The construction of the smelter is expected to be completed in nearly two years, which upon completion, will produce high quality aluminum ingots or sheets.

As per reports, Adaro plans to develop a “new energy battery factory” in the same site, thereby contributing to the development of electric vehicle ecosystem and renewable energy in the country.

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