Asian Metal News
Nanshan Group is set to bring its 1 mtpy alumina JV project (Phase I) in Indonesia online by end-2020. Located in Bintan Indonesia and with total investment of USD 5 bln, the JV project is jointly owned by Nanshan Group (70% stake) and PT. Sanmas Mekar Abadi (30% stake), a local bauxite miner with bauxite resource reserves of 300 mln t. Construction of phase I began in early 2019 and Nanshan Group is planning to start phase II development of a further 1 mtpy in mid-2020.
The JV project uses local bauxite (Al2O3 48% min, SiO2 8% max) and sources caustic soda and limestone from the local market. The alumina produced will target the Middle East market.
It has been reported that the total alumina projects/capacity in Indonesia backed by Chinese investments will amount to 4 mtpy by end-2020.
At present, mainstream Australian alumina FOB prices stand at USD 280/t FOB.