EGA And INALUM Ink Memorandum Of Understanding On Brownfield Aluminium Smelter Expansion In Indonesia

EGA And INALUM Ink Memorandum Of Understanding On Brownfield Aluminium Smelter Expansion In Indonesia

Emirates Global Aluminium PJSC (EGA) and PT Indonesia Asahan Aluminium (INALUM) signed a Memorandum of Understanding last week to cooperate on a brownfield aluminium smelter expansion in Indonesia.

The MoU will have EGA and INALUM collaborate on a feasibility study aimed at a possible expansion of the current plant. The proposed expansion would include EGA’s aluminium smelting technology and would add an additional 400 thousand metric tons per annum of aluminium smelting capacity at the site.

The study will also look into the feasibility of expansion and off-take of aluminium produced using renewable resources. Currently INALUM’s aluminium smelter in Kuala Tanjung produces primary aluminium powered by hydroelectric power.

Abdulnasser Bin Kalban, Chief Executive Officer of EGA, said in a press release that the agreement will enhance his firm’s reputation as a technology provider.

“This agreement further deepens our cooperation with INALUM, which is based on the potential use of EGA’s technology in a number of development projects in Indonesia. Our aim is to grow our position as the technology provider of choice in our industry, developing revenue streams for EGA from technology licensing and potentially further opportunities, while strengthening the relationship between our two countries.”

“We are pleased with the progress of our relationship with EGA, which we are confident will lead to the application of EGA’s leading smelting technology in Indonesia,” commented Hendi Prio Santoso, President Director of INALUM. “We look forward to further milestones in this brownfield expansion and our other projects in the near future.”

This agreement is not the first collaboration between the two firms, as they continue to work together on a 2020 agreement to investigate increasing Kuala Tanjung’s nameplate capacity by about 10 percent.

Based in Abu Dhabi, United Arab Emirates, Emirates Global Aluminium is an aluminium conglomerate created by the merger between Dubai Aluminium (DUBAL) and Emirates Aluminium (EMAL) in 2013. EGA had an estimated enterprise value of US$15 billion at the time the merger took place. The firm is owned equally by Mubadala Development Company of Abu Dhabi and Investment Corporation of Dubai. Emirates Global Aluminium holds interests in bauxite/alumina and primary aluminium smelting.