23 NOVEMBER 2012TheJakartaGlobe.com
Indonesia and China firms to jointly invest in an alumina refinery in Batam
Edited by : AL CIRCLE
1 min read
Local miner Indopura Resources joined forces with Chinese miner Hainan Joint Enterprise Business Service to build a bauxite smelter at a cost of about $700 million.
The funding for the smelter will be supported by China Construction Bank International.
The two companies signed a cooperation agreement in Batam on Wednesday.
“This cooperation agreement will add value to Indonesian bauxite,” said M. Arief Winata, managing director at Indopura Resources.
Indopura has putting together plans for the smelter and creating construction designs, which are expected to completed next year.
“The construction is expected to start in 2014,” Arief said.
The ore bauxite, Arief said, will be from Ketapang, West Kalimantan, from a 27,000-hectare mining area owned by local miner Laman Mining.
“We need 5,000 workers and needs land space of 160 to 170 hectares for the construction of the plant,” Arief said.
The Indonesian government has instituted a policy to tighten the exports of ore minerals as it seeks to increase the value of its natural resources by processing them locally. Mining accounted for only 12 percent of the country’s gross domestic product in 2011.
The government issued a ministerial decree that bans exports of some raw minerals, including bauxite and tin.
The funding for the smelter will be supported by China Construction Bank International.
The two companies signed a cooperation agreement in Batam on Wednesday.
“This cooperation agreement will add value to Indonesian bauxite,” said M. Arief Winata, managing director at Indopura Resources.
Indopura has putting together plans for the smelter and creating construction designs, which are expected to completed next year.
“The construction is expected to start in 2014,” Arief said.
The ore bauxite, Arief said, will be from Ketapang, West Kalimantan, from a 27,000-hectare mining area owned by local miner Laman Mining.
“We need 5,000 workers and needs land space of 160 to 170 hectares for the construction of the plant,” Arief said.
The Indonesian government has instituted a policy to tighten the exports of ore minerals as it seeks to increase the value of its natural resources by processing them locally. Mining accounted for only 12 percent of the country’s gross domestic product in 2011.
The government issued a ministerial decree that bans exports of some raw minerals, including bauxite and tin.
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