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Foam Ceramic Filter Indonesia Nickel

New entrants to the aluminum industry of the People’s Republic of China are planning to build an aluminum smelter with an annual output of 1 million tons in Indonesia.

According to a CRU report, Tsingshan Holding Group is planning to enter the field by building a new aluminum smelter in cooperation with Huafeng Group. The company operates an industrial park in Sulawesi, which is the planned location of the smelter.

CRU stated that by 2023, Qingshan will initially produce at a rate of 500,000 tons per year, but they did not specify when full-scale production will begin.

CRU senior consultant Dai Ying said that this may be the first of many new aluminum projects in Indonesia.

He went on to point out that the company can use Chinese technology and Indonesia’s low-cost coal-fired power plants. In addition, the company will benefit from work outside of the capacity restrictions imposed by Beijing on the industry.

Qingshan joined the China Hongqiao Group in Indonesia and several other Chinese companies currently planning or operating smelters in the country. Indonesia is expected to ban the export of bauxite from the country in order to increase its aluminum production.

Qingshan currently only produces nickel and stainless steel. It also plans to enter the copper industry through a US$2.8 billion copper smelter located in Weda Bay, where it will cooperate with McMoRan Inc.

Less than a decade ago, most of Indonesia’s bauxite was exported to China, which is by far the world’s largest aluminum producer. Since the beginning of the 2000s, with the surge in Chinese demand, the mining industry in West Kalimantan has exploded and has the largest bauxite reserves in Indonesia. All this stopped in 2014, when the archipelago country banned the export of its raw ore.

The policy aims to develop local industries by encouraging Indonesian companies to refine the ore into alumina before exporting. Alumina is a white powder that can be smelted to produce aluminum, and its value is at least 10 times that of primary bauxite.

However, many mining companies, including PPC, were unable to find a local refinery to purchase their ore, so they had to shut down. The governor of West Kalimantan Province, Sutarmidji, recently told local media that 260 open-pit mines belonging to various companies were abandoned after being closed.

These ancient mines remain open to various elements, allowing heavy metals in the soil to be dispersed into the air and waterways. Unless the top soil is replaced, the land cannot be used for farming. For Christopp, this has created an impossible dilemma for local farmers. Although the central government has requested to increase production for food security, they can no longer use many of their fields to grow rice.

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