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PrintState-owned mining company Aneka Tambang (Antam) has begun commissioning a bauxite processing plant in West Kalimantan — the first such plant in the country and the largest in Southeast Asia, an executive said on Monday.
The Tayan, West Kalimantan plant will processes bauxite ore into chemical grade alumin (CGA) in a shared venture with Japan’s Showa Denko. The commissioning, or the process of making sure that the plant runs as designed, kicked off in the presence of Energy and Mineral Resource Minister Jero Wacik.
“We expects that in March or April 2014, it will have full production [capacity],” said Antam president director Tato Miraza. “During this commissioning stage, production is only at 70 percent of the planned 300,000 tons.”
He said that the plant’s annual output of 300,000 tons of CGA would require 850,000 wet metric tons of bauxite ore per year.
Antam held an 80 percent stake in the plant, Indonesai Chemical Alumina (ICA), Tato said, and Showa Denko held the rest.
The bulk of the plant’s production, 200,000 tons per year, would be exported to Japan, while the rest would be marketed outside of Japan, including for domestic consumption, he said.
CGA, he said, is expected to contribute between 15 percent and 20 percent of Anatm’s revenues. Gold currently contribute 49 percent of the company’s revenues while nickel contributes 48 percent. The contribution of nickel, however, is expected to diminish as the price of the commodity weakens in the global market.
“After processing, the materil exported can have a value 10 times the value of bauxit ore,” Jero said. “This processing will also be able to help sustain the environment as the export of raw material is being controlled.”
CGA is used in the production of electronic components, building materials, integrated circuits, LCDs and other products.
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