Kayan Hydropower Nusantara, INALUM signs MoU for feasibility study to provide electricity for an integrated Aluminium smelter

PT Kayan Hydropower Nusantara (KHN), which will work on the construction of the Mentarang Induk Hydro Power Plant (PLTA) on the Mentarang River, Malinau, North Kalimantan towards the end of 2020, has signed MoU with PT Indonesia Asahan Aluminum (Inalum). Now, both the parties agreed on a joint study on the plan to provide electricity for an integrated aluminium smelter that is supported by the Mentarang Induk Hydroelectric Power Plant (PLTA) Project.

The signing was done virtually by the Antony Lesmana, President Director of PT KHN and Oggy Achmad  Kosasih, the Managing Director of PT Inalum. The signing of the memorandum of understanding was also witnessed Oktavianus Tarigan, Senior VP Business Development, PT Inalum, the elected Governor of Kaltara, Drs H. Zainal Arifin Paliwang, SH, M.Hum, Regent of Malinau, Dr Yansen TP, M.Si, the elected Regent of Bulungan, Syarwani, S.Pd, M.Si, the elected Regent of Malinau, Wempi W Mawa, SE, Commissioner of PT KHN, Juanda Lesmana and Director of PT KHN Nick Wright.

Ogi Prastomiyono, Director of Strategic Services, PT Inalum expressed his respect and pride for the signing. PT Inalum as a state-owned company engaged in the aluminium smelting industry is participating in the study of providing electricity for integrated aluminium smelters with PLTA Mentarang Induk.

"We are very grateful for the cooperation with PT KHN. With this cooperation we hope to achieve the vision of PT Inalum to achieve production of 1 million tonnes by 2025," he said.

Ogi admitted PT Inalum has experience in building generators by utilizing river flows. "Two hydropower plants in Lake Toba produce 600 megawatts and we also have the mandate to be able to develop mining commodities into downstream products," he said.

Antony Lesmana, President Director of PT KHN, said: “The signing of the MoU marks an important thing in the construction of the Mentarang Induk Hydroelectric Power Plant and the aluminium smelter plan in the Tanah Kuning Industrial and International Port (KIPI) Zone.”

“This hydropower plant is an integrated project with a smelter, in which later we will jointly develop optimal development options for this integrated project. We will look for an optimal commercial side for both parties which of course benefit all stakeholders, so there is nothing to lose, "he said.

He believes he can work with PT Inalum and is ready to make a final investment decision in the second half of 2022. This can be seen from the results of negotiations and commercial studies with PT Inalum.

"It is believed that this integrated project will later become a very big catalyst to realize the great potential in the economic development of Kaltara and Indonesia as a whole. This integrated project should also be the first of many joint development projects in the use of sustainable renewable energy, "he said.