Indonesian coal company PT Adaro Energy announced last week its plans for a US$728 million aluminium smelting plant on the island of Borneo.
The firm said in a statement that subsidiary PT Adaro Aluminium Indonesia signed a letter of intent on the project, which it has agreed to build in the Green Industrial Park Indonesia in North Kalimantan province. The industrial park is a project led by Garibaldi Thohir, Adaro’s president.
The “green” designation arises from the park’s power source, which is a nearby 11 thousand megawatt hydropower plant that will provide energy to the park.
In a statement, Adaro indicated that the aluminium smelter would be the result of a partnership among both domestic and international stakeholders, and is part of the company’s push towards more sustainable production.
Adaro’s Vice President Director Ario Rachmat said the growing demand for aluminium prompted the firm to commit to a new aluminium smelter.
“We are optimistic that global demand for aluminium products will keep rising, particularly for cable, battery, and chassis.”
“We also expect that, going forward, other industries, which require aluminium, such as solar panels and electric vehicles, can be produced in this facility,” he continued.