By Dominikus
PT Kalimantan Alumina Nusantara (KAN), 80% owned by Malaysia-based Press Metal Aluminium Holdings Berhad (PMAH), officially held a groundbreaking ceremony for its alumina refinery project on Wednesday, June 18, 2025, in Sanggau, West Kalimantan Province. The development was confirmed through images received by Petromindo.com on Thursday.
The refinery is designed to produce smelter-grade alumina (SGA), with the first phase targeted for completion by 2027. With a projected investment of Rp 41 trillion (approximately US$2.7 billion), the KAN facility will become Indonesia’s fifth SGA producer, joining PT WHW, PT Bintan Alumina Indonesia, PT Borneo Alumina Indonesia, and PT Borneo Alumindo Indonesia. Several other SGA projects are still in the permitting or investment-seeking stages.
“In September 2024, we announced our 80% equity participation in PT KAN, a new alumina refinery in Indonesia. The facility is expected to commence operations within two years, with an annual production capacity of 1 to 1.2 million tonnes, and potential for future expansion,” PMAH stated.
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“This upstream expansion will significantly enhance our alumina supply and boost our competitiveness across the aluminum value chain. It is a strategic initiative to improve self-sufficiency and ensure a stable alumina supply for our core smelting operations. Reducing reliance on third-party suppliers and traders will strengthen operational resilience and efficiency. Additionally, the proximity of the Indonesian refinery to our smelters in Sarawak is expected to result in cost savings and further operational optimization.”
In October 2024, Press Metal International Resources (HK) Limited finalized the acquisition of its 80% equity stake in PT Kalimantan Alumina Nusantara through a Share Subscription Agreement (SSA) and Shareholders’ Agreement (SHA) with PT Alakasa Alumina Refineri (AAR) and PT Dinamika Sejahtera Mandiri (DSM). The transaction was disclosed by PMAH Independent Non-Executive Chairman Datuk Yvonne Chia in the company’s 2024 Integrated Annual Report released in May.
Editing by Reiner Simanjuntak
