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Indonesia is tightening oversight of its downstream mineral policy after several bauxite miners failed to complete refining projects required under national regulations. The Ministry of Energy and Mineral Resources (MEMR) said a number of companies had been penalised for not proceeding with smelter and processing plant construction linked to Indonesia’s push for value-added mineral production.
{alcircleadd}Speaking during a hearing with Commission XII of the House of Representatives on Tuesday, Director General of Minerals and Coal Tri Winarno said the penalties imposed on some operators reached as high as USD 10 million. He confirmed that more than one company had been sanctioned but did not identify the firms involved.
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Documents presented at the hearing showed that six alumina refinery projects are currently being developed to produce smelter-grade alumina (SGA) and chemical-grade alumina (CGA). Together, the projects are expected to process 19.68 million tonnes of bauxite ore and produce about 7.48 million tonnes of refined alumina.
The ministry also highlighted the country’s sizable bauxite reserves. Indonesia is estimated to hold around 7.4 billion tonnes of bauxite resources, including roughly 2.7 billion tonnes that can be mined economically. Authorities see the reserves as central to plans for expanding domestic mineral processing and strengthening the industrial base.
Even so, production levels have fallen since Indonesia halted exports of raw bauxite. National output reached 31.8 million tonnes in 2022 before dropping to about 19 million tonnes in 2023 following the export ban. Ministry data showed production declined again in 2024 to 16.8 million tonnes.
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