The second-largest coal miner in Indonesia, PT Adaro Energy Indonesia Tbk will enter the aluminium sector as a part of the company's diversified business portfolio.
Garibaldi Thohir, the President Director of Adaro said, “The Company would soon enter the aluminium business.”
He further addressed, "It is hoped that this year and 2023 the construction of the smelter can begin so that in 2024 the construction will have been completed.”
The motive for ADRO’s stepping into the aluminium sector is to contribute to the development of electric vehicles (EV) and aluminium batteries.
Presently, the company is the second-largest miner in the nation concerning its production volume and market capitalization.
The company, however, established a subsidiary in the name of PT Adaro Aluminum Indonesia, and a Letter of Intention has been signed to Invest worth Rp10.4 trillion to build an aluminium smelter in the green industrial area of North Kalimantan.
Adaro’s aluminium smelter development is anticipated to support the downstream mining sector program to augment the selling value of the products produced.
“The company entered the aluminium industry in line with ADRO's transformation into four business pillars, namely coal, minerals, clean energy, and the Adaro green industry”, Garibaldi added.
Following Thohir’s visit to an electric vehicle manufacturing facility in the US, where he saw most of the components are made of aluminium, his desire to enter the aluminium sector emerged.
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