Mining firm PT Adaro Minerals Indonesia (ADMR) confirmed that its aluminium smelter project, which is being developed by its subsidiary PT Kalimantan Aluminium Industry (KAI), is expected to commence on a staged basis before the end of 2025. This is a positive development, as it raises the prospect of a potential dividend from the financial year 2025, financed from smelter operations profits.
_0_0.jpg)
Image source: https://upload.wikimedia.org/
Also read: From Beijing to Washington: Is Mexico’s trade shift a strategic move or survival tactic?
ADMR Director Mahardika Putranto noted in a disclosure to the Indonesia Stock Exchange on September 18, 2025, “The aluminium smelter under construction will enter its first pot operation stage by year-end.” The first phase is designed for 500,000 tonnes of aluminium ingots annually, with expansion plans targeting 1.5 million tonnes per year in subsequent stages.
Construction is in its final stages, with installation of potroom equipment, anode systems, jetty facilities, and worker housing nearing completion. To strengthen financing, ADMR’s subsidiary PT Alamtri Indo Aluminium (AIA) boosted its equity commitment, investing an additional Rp947.49 billion (USD 57 million) in June 2025, bringing the total to Rp4.91 trillion (USD 295 million).
The smelter is sited at Kalimantan Industrial Park, Indonesia (KIPI), North Kalimantan, the countrys prominent green industrial hub, which is part of Indonesia's downstreaming policy and addresses the shortfall of domestic supply where aluminium is concerned. While ADMR's core business is coal; the movement into aluminium facilitates growth in renewables, EV batteries and manufacturing, underpinning its position in the Government of Indonesia National Strategic Projects (PSN)
Alumina supply challenges and renewable shift timeline
Earlier this year, ADMR projected the facility could begin production earlier. On 10 May 2023, Director Totok Azhariyanto stated, “Currently, ADMR has explored cooperation with local players to supply 50 per cent of the alumina needs for the smelter while the rest will still rely on imports.” He added, “The total investment value, including power plants, reaches USD 2 billion. Meanwhile, the alumina supply agreement will be finalised around six months before the commercial operation date [COD].”
President Director Christian Ariano Rachmat stressed, “The majority of alumina is still imported, even though Indonesia has raw material for alumina, namely bauxite.” While a renewable-powered smelter is planned, this shift will only materialise in 2030, when ADMR’s wind power projects come online.
Also watch: Speed isn’t always about what’s fastest; it’s about what delivers responsibly
Responses
