[SMM Aluminum Express News] PT Indonesia Asahan Aluminium (INALUM) is advancing plans to significantly boost its production capacity by constructing a new aluminum smelter. A Bankable Feasibility Study (BFS) is currently underway, evaluating key scenarios for the plant's location, either near an energy source or close to the alumina raw material source in Mempawah, West Kalimantan. This study is targeted for completion in early 2026.
Following the BFS, a Final Investment Decision (FID) is expected, with the project's construction phase estimated to take three years. The goal is to commence production by 2028-2029. A primary focus of the study is securing a reliable and economical energy supply. While INALUM's existing Kuala Tanjung smelter uses hydropower to produce "Green Aluminium" for export markets, the new Mempawah facility is considering a coal-fired power plant (PLTU) due to the low cost of domestic coal, making the expansion economically viable. This strategy will create two product brands: a certified green aluminum from Kuala Tanjang and a more cost-competitive product from Mempawah for domestic consumption. The company is also open to future integration of renewable energy. This expansion is projected to increase INALUM's total aluminum production from the current 277,000 tons per year to 600,000 tons annually.
