Inalum Set to Finalize Acquisition of Antam’s Bauxite Mine by 2030
Mon 29 Sep 2025, 04:48 AM
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PT Indonesia Asahan Aluminium (Inalum) is preparing strategic steps to strengthen its aluminium raw material supply. The state-owned company plans to acquire a bauxite mine owned by PT Aneka Tambang Tbk (Antam) in West Kalimantan before 2030.
“We are currently in the due diligence process to acquire one of Antam’s IUPs that is closest to PT BAI (Borneo Alumina Indonesia),” said Inalum President Director Melati Sarnita, as quoted by Antara, Monday (September 29, 2025).
Melati explained that MIND ID, the state mining holding, is targeting Inalum to own its own bauxite mine by 2030. Discussions between Inalum and Antam are ongoing regarding the proposed acquisition.
PT BAI, located in Mempawah, West Kalimantan, is a company that processes bauxite ore into alumina, the primary feedstock for aluminium. BAI itself is a subsidiary of Inalum and Antam, and operates the Smelter Grade Alumina Refinery (SGAR).
MIND ID President Director Maroef Sjamsoeddin affirmed his ambition to increase national aluminium production capacity from 275 thousand tons per annum (ktpa) to 900 ktpa by 2029. To support this target, SGAR Phase II is being prepared with an additional 1 million tons of alumina per year.
In addition, Antam is building a washed bauxite facility in Mempawah with a capacity of 1.47 million tons per year to reinforce bauxite ore supply.
“Bauxite, alumina, and aluminium are critical raw materials that support Indonesia’s sustainable manufacturing and renewable energy industries,” Maroef said.
3 Major Plans by Inalum to Advance Aluminium Downstreaming
PT Indonesia Asahan Aluminium (Inalum) is undertaking three major corporate initiatives to develop the national aluminium downstream industry. These include optimizing the Kuala Tanjung Smelter to increase production capacity; constructing a second Smelter Grade Alumina Refinery in West Kalimantan; and planning a new aluminium smelter.
In line with this, Inalum has signed a Heads of Agreement (HoA) with energy and commodities company Vitol for the offtake of the second smelter project, at the World Osaka Expo 2025. Inalum has also strengthened strategic global cooperation with Tiberius and Panasonic on developing the Indonesian aluminium market in Japan.
Inalum President Director Melati Sarnita said that the potential for aluminium downstreaming in Indonesia remains very high and requires commitment from many stakeholders. Given this large potential, Inalum is opening opportunities for all parties wishing to collaborate with the company in developing Indonesia’s bauxite–alumina–aluminium commodity ecosystem.
“Indonesia has extraordinary potential in the aluminium sector, especially with the government’s accelerated downstream agenda. For Inalum, this cooperation is not merely about capital. It is a long-term commitment to build a low-carbon aluminium industry, support the clean energy transition, and create new jobs and markets,” Melati said, Friday (September 26, 2025).
Mineral Downstreaming Development
MIND ID Corporate Secretary Pria Utama stated that opening global partnerships is part of MIND ID’s unified effort to deliver greater economic contribution to Indonesia.
The more global investors that contribute to mineral downstreaming, the greater the economic benefits for Indonesia—in terms of job creation and the added value generated in the future.
“Indonesia’s mineral mining industry has vast development potential. We are working to ensure that the impact of aluminium downstreaming is optimized and meets the expectations mandated by the Government—namely, achieving Indonesia Emas 2045,” Pria Utama said.
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