The holding of state mining firms, PT Indonesia Asahan Aluminum (MIND ID) signed a deal with Emirates Global Aluminum (EGA), the largest aluminum producer in the United Arab Emirates (UEA) for building smelter grade alumina refineries at costs of around US$800 million.
Both parties will set up a joint venture (JV) to build a greenfield aluminum smelter in Mempawah, West Kalimantan and a brownfield upgrade of a smelter in North Sumatra. This project is a continuation of the memorandum of understanding signed in front of the two leaders in Abu Dhabi on Jan. 21, 2020.
Beside with EGA, MIND ID also supported the option of cooperation between PT Freeport Indonesia (PTFI) and a Chinese company, Tsingshan Steel, to build a copper smelter in Weda Bay, Halmahera.
The integrated aluminum company also contributed to the capital expenditure for the the subsidiary’ smelter construction plan in the Java Integrated Industrial and Port Estate in Gresik, East Java. The investment value of the projects around $3 billion and the parent contributed around $1.5 billion.