Carry out the Downstream Mandate, MIND ID Increase Smelters

Jakarta, Reportase – Mining BUMN holding, MIND ID is currently intensively working on strategic projects that provide added value to the economy through industrial downstreaming in its various subsidiaries.

This was acknowledged by MIND ID Corporate Secretary, Heri Yusuf. He said that every member of MIND ID is running various downstream projects with fast progress.

For example, in the coal mining sector, currently PTBA is working on downstream projects ranging from power plants to new renewable energy (EBT) projects. For the power plant, PTBA is carrying out construction in the Sumsel 8 area with a capacity of 2X660 Megawatts with construction progress reaching 97.2% as of the end of December 2022.

Meanwhile in the EBT sector, PTBA is also working on solar and wind power plants. Currently several PTBA solar panels are already operating, including at Soekarno Hatta International Airport (SHIA) and on the Bali Mandara Toll Road with a total of 641 kwp.

Several strategic projects in the form of renewable energy which are being worked on by PTBA and are still in the development stage, most of them are a form of synergy with other BUMNs in the application of solar panels.

“Not only solar panels, PTBA is also developing a wind power plant with a capacity of up to 2 GW,” explained Heri in a written statement, Tuesday (11/4/2023).

Then next there is ANTM which has carried out a number of downstream projects such as the construction of a ferronickel smelter in Kolaka, Southeast Sulawesi. In addition, Antam is also building a ferronickel smelter in East Halmahera, North Maluku. When both are operational, ANTM’s ferronickel production capacity can increase to 40,500 tons per year.

ANTM is also working on strategic projects related to the energy transition. Focus downstream ANTM is currently more focused on developing the electric vehicle ecosystem, especially in terms of battery development for electric vehicles. The government, through the Ministry of BUMN, assigned ANTM together with MIND ID, PLN and Pertamina to form the Indonesian Battery Industry PT (IBC).

“IBC and Ningbo Contemporary Brunp Lygend Co. Ltd (CBL) have signed a framework agreement covering nickel ore mining activities to the battery recycling industry on April 14, 2022,” said Heri.

In the tin metal and mineral sector, there is TINS ​​which conducts downstreaming to develop national tin. One of the TINS ​​strategic projects is the Top Submerged Lance (TSL) Ausmelt Furnace with an investment cost of up to USD 80 million.

The aim is to answer challenges related to low levels recovery from the smelting process and the reduction of high grade tin ore (70% grade). Through this technology, it is certain that TINS ​​can now process low levels of lead, namely up to 40%.

Next is Inalum, a member of MIND ID which focuses on aluminum production. Downstream efforts were carried out by establishing a subsidiary of Indonesia Aluminum Alloy (IAA) in order to increase the production capacity of the Kuala Tanjung smelter.

IAA will produce secondary aluminum billets with a printing capacity of 50,000 tons per year in stages and in the future will produce various extruded aluminum products as their derivative products.

Meanwhile, Freeport Indonesia is currently in the stage of building a mega smelter in the Java Integrated Industrial Estate (JIIPE) area, Gresik, East Java, with a total area of ​​around 100 hectares.

“The project, which is called the Manyar Smelter, has a copper concentrate processing capacity of 2 million tons per year and makes the single line smelter the largest copper processing site in the world,” added Heri.

The processing output of the Manyar Smelter will be added to the processing capacity of the operating smelter, PT Smelting, with a processing capacity of 1 million tonnes of copper concentrate annually. Thus, after the Manyar Smelter operates, Freeport will be able to process 3 million tons of copper concentrate per year.

Finally, the Mempawah Smelter Grade Alumina Refinery (SGAR) project, West Kalimantan. The project from ANTM and Inalum through PT Borneo Alumina Indonesia (BAI) processes bauxite into aluminum with a capacity of 1 million tons.

“The real manifestation of MIND ID’s commitment in carrying out the Downstream Program is to increase the number of smelters processing commodities from raw materials to semi-finished materials and finished products. The hope is that this will increase state revenues through adding value from the processing of mining goods,” concluded Heri.

[Gambas:Video CNBC]