INALUM Successfully Sets Production Record of 265,546 kT in 2024
28 Dec 2024, 09:20 AM
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PT Indonesia Asahan Aluminium (INALUM) has achieved an impressive and record-breaking performance in 2024. This success is the result of the company's strategic steps in boosting production and sales to capitalize on the domestic market, while also contributing to achieving aluminum self-sufficiency from domestic minerals.INALUM has reached an All-Time High Achievement in Supply Chain & Commercial Management for 2024. The company achieved an All-Time High in production, with a total output of 265,546 kT as of December 22, 2024, surpassing the previous record of 264,474 kT set in 2014.Furthermore, INALUM's aluminum sales also reached an all-time high of 263,195 MT\, breaking the previous record of 260,651 MT set in 2013.INALUM has also achieved Quadrant 1 in World-Class Smelter Cost Management from Wood Mackenzie. In terms of cost leadership, INALUM successfully reduced its cash cost by 9.5% to 10%, from USD 1,866 per ton in Q3 2023 to USD 1,688 per ton in Q3 2024.The President Director of INALUM, Ilhamsyah Mahendra, expressed gratitude for the positive impact of the company's strategic initiatives over the past few years on its performance. "We will continue to consistently implement the initiatives that have been established in order to accelerate and strengthen the company's position in the future," he said in an official statement on Sunday (December 28, 2024).Ilham further explained that INALUM's production capacity reached 275,000 tons in 2024. Through Pot Upgrading and Pot Optimization, INALUM's production capacity could reach 300,000 tons in 2025-2026. INALUM plans to expand with a second smelter with a capacity of 600,000 tons of aluminum, and a third smelter with a similar capacity, bringing the total aluminum production capacity to 1.5 million tons within the next 5 to 10 years.With this move, INALUM aims to meet the domestic aluminum market demand, which ranges from 1 million to 1.2 million tons, with an annual market growth rate of 3% to 5%.Additionally, global aluminum demand is still experiencing a supply deficit of 3 million to 5 million tons, presenting a significant opportunity for all global aluminum production, including INALUM."We will capitalize on this opportunity as much as possible. Not only to meet the domestic market demand but also to increase our penetration in the global market, allowing us to consistently deliver this strong performance in the coming years," said Ilhamsyah Mahendra.MIND ID's Corporate Secretary, Heri Yusuf, explained that this achievement is a concrete demonstration of the MIND ID Group's commitment to supporting Indonesia's aluminum self-sufficiency, aiming to drive downstreaming and industrialization within the country.As a strategic active holding, MIND ID has also integrated the businesses of PT Aneka Tambang Tbk and INALUM in the effort to downstream bauxite into alumina, which serves as the main raw material for INALUM's aluminum production."We are certainly very grateful for this achievement, and we will continue to be consistent in implementing all the strategic initiatives that have been planned to support the manufacturing sector and provide greater added value, aiming towards Indonesia's Golden 2045" he added.Heri explained that aluminum will be one of the key commodities in supporting the development of Indonesia's electric vehicle (EV) ecosystem. Its significant use as a key component in battery frames, car bodies, and rims makes it a critical material in the sector."We will consistently support the government to achieve 8% growth by implementing a series of mineral downstreaming programs, which will ultimately strengthen the strategic industries entrusted to MIND ID by the government, particularly the electric vehicle ecosystem" he said.
