Rusal nears final approval for new bauxite-to-alumina project in Kalimantan, Indonesia

Russian aluminium producer Rusal is nearing the final stage of the permitting process for a planned bauxite-to-alumina processing project in Kalimantan, Indonesia, according to Energy and Mineral Resources Minister Bahlil Lahadalia.

The project will process bauxite into alumina as part of Indonesia’s push to expand domestic mineral processing. Lahadalia said the Indonesian government is involved in the overall development, while Rusal will work directly with Indonesian private companies on the project.

Lahadalia said, “They are going to build a downstreaming facility to process bauxite into alumina. It will be located in Kalimantan. The permitting process is already in the near-final stage.”

The minister has not yet disclosed the names of Rusal’s local partners or the expected investment value. These details are expected to be announced after the project’s feasibility study is completed.

The project follows comments by Indonesian President Prabowo Subianto at the 11th Eastern Economic Forum in Vladivostok on September 3, where he highlighted cooperation with Rusal as part of Indonesia’s efforts to accelerate domestic mineral refining.

Indonesia has identified 18 downstreaming projects as national priorities for 2026, covering commodities including bauxite and nickel, with combined planned investment of around IDR 618 trillion (USD 35 billion).

The country already operates the Smelter Grade Alumina Refinery (SGAR) Phase I in Mempawah, West Kalimantan, which has an annual alumina production capacity of 1 million tonnes. The government also reinstated the expansion of the Mempawah bauxite and alumina facility as a strategic priority in April 2026.

Investment in Indonesia’s bauxite downstream sector has also increased sharply. Realised investment reached IDR 40 trillion (USD 2.3 billion) in Q2 2026, up 193 per cent from IDR 14 trillion (USD 793 million) in the previous quarter.

Bauxite recorded the highest downstream investment among major commodities during the quarter, ahead of nickel at IDR 29 trillion (USD 1.6 billion) and copper at IDR 17 trillion (USD 963 million). Total downstream investment across commodities reached IDR 153 trillion (USD 9 billion) during Q2.

In the first half of 2026, overall downstream investment realisation reached IDR 300 trillion (USD 17 billion), accounting for around 30 per cent of Indonesia’s total national investment realisation of IDR 1,000 trillion (USD 57 billion).