Adaro Minerals' aluminium smelter will be open in 2025

The planned renewable energy-sourced aluminium smelter of PT Adaro Minerals Indonesia Tbk (ADMR) in Green Industrial Park Indonesia, North Kalimantan, is anticipated to be functional in Q2 2025 with a total investment of US$2 billion.

Totok Azhariyanto, the Director at Adaro Minerals, said, " Currently, ADMR has explored cooperation with local players to supply 50 per cent of the alumina needs for the smelter while the rest will still rely on imports."

"The total investment value, including power plants, reaches US$ 2 billion. Meanwhile, the alumina supply agreement will be finalized around six months before the commercial operation date [COD]."

The aluminium smelter is scheduled to open in the second quarter of 2025, with a capacity of 500,000 tonnes in the first phase.

Christian Ariano Rachmat, the President Director of Adaro Minerals Indonesia, said, "The majority of alumina is still imported, even though Indonesia has raw material for alumina, namely bauxite." 

"We buy alumina from domestic and international sources and produce it into aluminium."

Initially, this aluminium smelter was predicted to produce green aluminium by no longer using coal as an energy source. However, the plan will be realized in 2030 when ADMR's wind power plant project accomplishes.