Indonesia and China agreed to produce alumina jointly

Indonesia and China have agreed to jointly produce alumina, commodities processing of bauxite into aluminum upstream raw material industry with aluminum ingot products, amounting to two million tons per year.

The deal is a series of signing a memorandum of understanding between the PT Indonusa Dwitama with Chalco Hong Kong Limited in Beijing last weekend.

The TS Indonusa Dwitama Fungkong interrupted signing Viktor said, under an agreement that the Chalco Hong Kong Limited invested 1.1 billion U.S. dollars for the construction of the plant (refinary) in West Kalimantan. "Initial production capacity of approximately one million tonnes per year. Yet the next two to three years, the production capacity will be increased to two million tonnes per year," he said.

Operational Director of PT Indonusa Dwitama Jatmiko said alumina plant is approximately two to three years. "So the initial production expected to start in 2015 or 2016," he said.

Chalco President Luo Jianchuan Hong Kong Limited says it is committed to support a fully-equipped strategic partnerships fostered between Indonesia and China, especially in the field of investment.

Chalco Hong Kong Limited is one of the largest aluminum producer in china. So far, China is the largest producer and consumer of aluminum in the world is about 40 percent of the market share.

That way, by the end of 2011 China registered as an importer of alumina. Indonesia has been supplying about 80 percent of 25.420.00o tons of bauxite imported by China by mid-2012.

The export declined in June in conjunction with the implementation of the export tax mineral raw materials, coal, and gas by 20 percent.

Present at the signing of a memorandum of understanding was Ambassador to China Imron Cotan and Mongolia and Chinese Ambassador Liu Jianchao Indonesia.