Press Metal Partners on Alumina Refinery in Indonesia with USD 750 Million Investment
Press Metal Aluminium Holdings Berhad, Southeast Asia’s largest aluminum smelter, announced today a new joint venture with PT Alakasa Alumina Refineri (AAR), PT Dinamika Sejahtera Mandiri (DSM), and PT Kalimantan Alumina Nusantara (KAN). The collaboration will see KAN establish and operate an integrated alumina refinery, power plant, jetty, and supporting infrastructure in Sanggau, West Kalimantan, Indonesia.
The initial phase of the refinery is projected to have an annual production capacity between 1 and 1.2 million metric tonnes, with potential plans to double output in the future. The estimated cost of Phase 1 is USD 750 million (approximately RM 3.238 billion).
Press Metal will acquire an 80% equity stake in KAN through a subscription priced at RM 1.036 billion, to be executed in seven tranches over the next year and funded by the company’s internal resources. AAR will hold 19.77%, while DSM will hold 0.23%.
Tan Sri Paul Koon, Group Chief Executive Officer of Press Metal, emphasized the strategic importance of the project, stating, “This venture will strengthen our upstream operations, ensuring higher self-sufficiency in alumina supply, which is critical for our smelting operations. It will also reduce our reliance on third-party suppliers and enhance the overall efficiency of our operations.” Koon further noted that once the refinery becomes operational, the company expects significant cost savings from a long-term offtake agreement.
