By Dominikus
Sanggau-based alumina refinery PT Kalimantan Alumina Nusantara (KAN), 80% controlled by Malaysia-based Press Metal Aluminium Holdings Berhad (PMAH), is currently under construction and is expected to be completed by 2027. The refinery aims to produce between 1 million and 1.2 million metric tons of alumina annually in its first phase. This information was disclosed by Datuk Yvonne Chia, PMAH’s Independent Non-Executive Chairman, in the company's 2024 Integrated Annual Report released on Friday, May 3.
"In September 2024, we announced our 80% equity participation in PT Kalimantan Alumina Nusantara, a new alumina refinery in Indonesia, which is set to be completed by 2027. This venture offers opportunities to secure long-term raw material supplies through strategic joint ventures, including the establishment of the alumina refinery in West Kalimantan. It ensures greater control over upstream operations and enhances cost efficiency," stated Chia.
Read also: Bauxite downstream industry in West Kalimantan eyes US$16.1b investment
In September 2024, the Group, through its wholly-owned subsidiary, Press Metal International Resources (HK) Limited (PMIRHK), entered into a share subscription agreement (SSA) and a shareholders' agreement (SHA) with PT Alakasa Alumina Refineri (AAR) and PT Dinamika Sejahtera Mandiri (DSM). This agreement allowed PMIRHK to acquire 80% equity in PTKAN, with DSM surrendering 100% of its equity interest in PTKAN in exchange for 2.75% equity, valued at USD 687,500 (approximately RM 2.97 million), in the new joint venture. Following this deal, PMIRHK and AAR now hold 80% and 17.25% equity interest in PTKAN, respectively.
The acquisition has further expanded the Group’s involvement in the upstream market. Under the terms of the SSA and SHA, the Group committed to capital injections totaling US$ 240 million (approximately RM 1.04 billion), which will be executed in seven tranches over the next year. In October 2024, the Group completed the first tranche, injecting US$ 20 million (approximately RM 88 million) for 20 million "Series B" shares in PTKAN. In December 2024, the second tranche was completed, with the Group injecting an additional US$ 40 million (approximately RM 176 million) for "Series C" shares, maintaining its 80% equity interest in the project.
Editing by Reiner Simanjuntak
