UAE's EGA, INALUM ink deal to build aluminium smelter in Indonesia

Deal will witness the upgrade of an existing INALUM smelter and the development of another aluminium smelter in Indonesia

UAE's EGA, INALUM ink deal to build aluminium smelter [representative image]
© Emirates Global Aluminium
UAE's EGA, INALUM ink deal to build aluminium smelter [representative image]

UAE-based Emirates Global Aluminium (EGA), touted as the world’s largest producer of premium aluminium, has inked a memorandum of understanding (MoU) with Indonesian state-owned aluminium smelter PT Indonesia Asahan Aluminium (INALUM) to co-operate on the upgrade of an existing INALUM smelter and the development of an aluminium smelter in Indonesia.

The agreement, which was signed by the managing director of EGA, Abdulla Kalban, and the president director of INALUM, Orias Petrus Moedak, also targets the licensing of UAE-developed EGA technology to the Indonesian company.

The MoU was exchanged in the presence of the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, His Highness Sheikh Mohammed bin Zayed Al Nahyan, and the President of the Republic of Indonesia, Joko Widodo.

EGA and INALUM, who are already cooperating on the potential brownfield upgrade using EGA technological know-how of INALUM’s existing aluminium smelter in North Sumatra, will evaluate the potential to form a joint venture to develop a greenfield aluminium smelter in Indonesia.

Specific contributions to the joint venture could include services related to technology, the supply of raw materials, and the marketing of metal.

Commenting on the memorandum of understanding, Kalban said: “EGA’s technology is proven both in the UAE and internationally, and we believe that we can make a big contribution to the success of INALUM’s expansion plans, and potentially even in future a vertically-integrated alumina refinery, to the benefit of both our countries.”

EGA has developed aluminium smelting technology in the UAE for more than 25 years and has used its own technology in every expansion since the 1990s. EGA has also retrofitted all its older production lines.

EGA recently completed a three-year project to transfer its UAE-developed DX+ Ultra technology to Aluminium Bahrain for its Potline 6 expansion project. The transfer was the first time a UAE industrial company had licensed its core process technology internationally, in a milestone for the development of a knowledge-based economy in the UAE.

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