Chinese companies accelerate their entry into Indonesia's aluminum industry chain

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Chinese capital accelerates the layout of Indonesia's aluminum industry chain.Confirmed by the Ministry of Energy and MinesNanshan AluminumStationed in Galang Batang Special Economic Zone, Bintan Island (2 million tons of alumina per year);Hongqiao AluminumExpansion of West Kalimantan alumina plant through PT WHW (doubling capacity to 4 million tons); and 3 Chinese companies in talks for electrolytic alumina plant project (proposed investment of $1.2 billion).

7.4 billion tons of bauxite reserves in Indonesia (3rd in the world), with production locked at 14 million tons in 2025 (to fit existing smelting capacity).

The 2023 bauxite export ban is forcing local processing, with the government requiring new projects to extend to end products (e.g., automotive panels); however, there is only one electrolytic aluminum plant in the country (500,000 tons per year) at Inalum, with lagging port/electricity facilities constraining the project's progress; and the Ministry of Energy and Mines has stepped up its review of environmental compliance (shutting down two non-compliant miners).

China borrows from Indonesia to break through Australian ore import restrictions(dependence on Australian bauxite down to 40% by 2025), meeting theNingde Times / BYDIndonesia Battery FactoryThe demand for aluminum. Currently there are 4 alumina plants in operation (total capacity of 4.3 million tons) electrolytic aluminum conversion rate is only 11.6%, the goal is to increase the electrolytic aluminum capacity to 2 million tons by 2029.

# Chinese Capital Express