(Yicai Global) March 20 -- Tianshan Aluminum Group, the metal’s second-largest producer by capacity in China, will invest nearly USD1.6 billion to build an aluminum oxide plant in Indonesia with an annual capacity of 2 million tons, boosting its raw material supply.
Tianshan Aluminum will build the new plant in the Riau Islands, Indonesia, the Shihezi-based firm announced late on March 17, adding that it will also set up a wharf and raw material yard as well as building roads inside and around the plant. Aluminium Dioxide
The first stage is designed to produce 1 million tons of aluminum oxide a year and has investment of USD952 million, the firm said, without revealing a construction schedule. Indonesia is rich in bauxite and coal and has low labor costs, so building the plant there can improve Tianshan Aluminum’s supply of raw materials, it noted.
Tianshan Aluminum has been quickly raising its annual aluminum oxide capacity in recent years, its annual report showed. The firm produced over 1.5 million tons last year, a 70 percent invrease, and aims to produce 2.5 million tons this year. In contrast, its electrolytic aluminum output has stayed around 1.15 million tons these years.
On Feb. 23, Tianshan Aluminum said it would buy the mining rights to three geographically adjacent bauxite mines in Kalimantan, Indonesia for nearly USD30.3 million. One is believed to have reserves of around 68 million tons.
The firm’s operating revenue rose 15 percent to a record CNY33 billion (USD4.8 billion) last year from 2021. But net profit slid 31 percent to CNY2.7 billion, per its annual financial report released on March 17.
White Alumina The announcement of the new plant in Indonesia failed to boost the firm’s stock price [SHE: 002532]. Its shares closed down 3.3 percent at CNY7.54 (USD1.09) today.