Indonesia's Downstreaming Ambition Requires US$545 Billion

[Indos]

IBC Targets One of the Biggest EV Battery Players in 2027, Here's How to Make It Happen​

Screenshot, IBC President Director Toto Nugroho/Iconomics


Reporter: Maria Alexandra
Editor: Kristian Ginting
April 20, 2023


Iconomics - Indonesia Battery Corporation (IBC) targets to become one of the largest electric vehicle (EV) battery manufacturers by 2027 with a production output of around 45.45 Gigawatt hours (GWh). Therefore, IBC will not only be a producer, but will also form an EV ecosystem.

To realize this, said IBC President Director Toto Nugroho, his party needs global cooperation with technology and financing companies to develop production from upstream to downstream. The amount of investment needed to create an EV ecosystem reaches US$15 billion.

"So we develop from the mining side and then go into smelting for battery chemicals, battery cells, and recycling, which is very important for us because we use recycling technology," Toto said at Hannover Messe 2023 on Wednesday (19/4) yesterday.

Toto said it expects total domestic EV battery demand to grow by 20 GWh in 2030 to 59 GWh by 2035 at a CAGR of 23% until 2035. Therefore, IBC said there are several achievements of the Indonesian government to make EV batteries and battery ecosystems.

"The first electric vehicle battery factory in Karawang has been inaugurated by President Joko Widodo in September 2021, the current construction progress is 80% and we will start producing in 2024," said Toto.

Furthermore, said Toto, there is cooperation between IBC, PT Aneka Tambang (Antam) Tbk, CATL consortium, LGES consortium with a framework agreement on April 14, 2022. Acquired a local 2-wheeled factory and developed battery cells, and signed a Conditional Shares Purchase Agreement (CSPA) for the development of the EV battery industry in Indonesia in January 2023 with the CATL consortium.

Therefore, Toto said, the current government is really encouraging the manufacture of batteries and EV ecosystems for 2-wheeled and 4-wheeled vehicles. To attract investors, the government offers various incentives such as tax holidays, and tax allowances.

With the development of this EV, said Toto, the resulting multiplier effect reduces CO2 emissions by up to 9 million tons per year, and reduces fuel imports by 29 million barrels per year.

For information, IBC is a company established by 4 state-owned companies, namely Mind ID, PT Antam, PT Pertamina, and PT PLN.

IBC Targetkan Salah Satu Pemain Baterai EV Terbesar di 2027, Ini Cara Mewujudkannya

Indonesia Battery Corporation (IBC) menargetkan akan menjadi salah satu produsen baterai kendaraan listrik (EV) terbesar pada 2027 dengan hasil produksi sekitar 45 45 Gigawatt hours (GWh). Karena itu, IBC tidak sekadar menjadi produsen, tapi juga akan membentuk ekosistem EV. Untuk mewujudkan hal...

www.theiconomics.com

 

[Indos]

Vale breaks ground on $2.5bn nickel project in Indonesia​

The Bahodopi project will be equipped to produce ferronickel, with 73,000tpa to 80,000tpa of nickel content.

The new facility is expected to create up to 15,000 jobs during the construction phase. Credit: Sigurd Rille from Pixabay.

February 13, 2023


\
PT Vale Indonesia Tbk (PT Vale) has started construction on a $2.48bn integrated low-carbon nickel mining and processing project in Central Sulawesi, reported Reuters citing an Indonesian senior minister.

This ferronickel smelter is being built in Sambalagi Village, Bungku Pesisir District, Morowali Regency.

The Bahodopi project will be equipped to produce ferronickel with 73,000tpa to 80,000tpa of nickel content.

The smelter is expected to create up to 15,000 jobs during the construction phase.

It is being developed by Vale in a joint venture with Taiyuan Iron & Steel Group (TISCO), a subsidiary of China Baowu Steel Group (Baowu), and Shandong Xinhai Technology (Xinhai).

Featuring eight lines of rotary kiln-electric furnace ferronickel processing capacity, the Bahodopi facility will source electricity from a gas-fired power plant for the processing of smelting to reduce carbon emissions.

Indonesia Coordinating Minister of Economic Affairs Airlangga Hartartowas quoted by Antara via voi.id as saying: “This is the first green smelter factory that I have seen. Based on LNG gas, of course, we ask for support from the Energy Commission (DPR RI) that this is green energy, green product, and green mining.”

Reuters recently reported that Vale was in advanced talks with undisclosed potential partners for its new base metals investment vehicle.

Vale is looking to place its copper and nickel mines into a new legal structure called Vale Base Metals.

Vale breaks ground on $2.5bn nickel project in Indonesia

PT Vale Indonesia Tbk (PT Vale) has started construction on $2.48bn integrated low-carbon nickel mining and processing project.

www.mining-technology.com

 

[Indos]

Adaro's Aluminum Smelter to Start Production in 2025, Investment Over Rp 29.4 Trillion (2 billion USD)​

News from coilsBUSINESS • Yesterday 17.01pm

Illustration of Adaro Minerals. Photo: Adaro Minerals© Provided by Coil


PT Adaro Minerals Indonesia Tbk (ADMR) targets the first phase of the aluminum smelter in North Kalimantan (Kaltara) owned by its subsidiary, PT Kalimantan Aluminium Industry (KAI) to be operational in the second quarter of 2025.

KAI is a project company for the ADMR aluminum smelter with a capacity of 500,000 tons per year with 65 percent ownership. While 22.5 percent of project ownership is from the investment group from China, namely Legend Holdings and 12.5 percent from PT Cita Mineral Investindo Tbk (CITA).

"The overall investment including power plants reaches more than USD 2 billion (or IDR 29.46 trillion, assuming an exchange rate of IDR 14,732 per US dollar) and for the first phase will produce 500 thousand tons per year of aluminum ingots. We plan to start commercial production around the second quarter of 2025," said Director of Adaro Minerals Indonesia Totok Azhariyanto in the AGMS press conference at St Regis Hotel Jakarta, Wednesday (10/5).

Adaro Minerals has been exploring cooperation with local players to supply alumina needs for smelters. The supply of alumina for ADMR will be confirmed about six months before the commercial operating date (COD).

"We have got an MOU, about 50 percent from local and the rest from traders. This is still COD, 6 months before COD will be finalized in the agreement," said Adaro Minerals Director Wito Krisnahadi.

Then, President Director of Adaro Minerals Indonesia Christian Ariano Rachmat explained that aluminum is needed by Indonesia but Indonesia still need to import some of it. Indonesia still imports nearly 1 million tons of aluminum.

Coal mining activities at coal mining companies at PT. Adaro Energy. Photo: Masmikha/Shutterstock

"We have bauxite sent abroad, (then) we import the aluminum. So if it continues, if we have at home the money abroad all runs out, we become consumers, we don't become producers, long time we run out of saving, "said the man who is familiarly called Ario.

In the initial stage, the Kaltara (North Kalimantan) smelter project is expected to produce aluminum ingots of around 500 thousand tons per year, which can be increased to 1.5 million tons per year.

Mineral processing is part of Adaro Minerals' initiative to contribute to Indonesia's green economy, which the government is massively developing and seizing opportunities in.

ADMR spent USD 21.6 million for capital expenditure in the first quarter of 2023 compared to USD 0.28 million in the first quarter of 2022 related to infrastructure projects at PT Maruwai Coal and the construction of aluminum smelters under KAI.

MSN

www.msn.com

 

[Indos]

Inaugurated by Jokowi Next Month, PT Timah's New Smelter Ready to Hit Production of 40 Thousand Tons​

Tin smelting operation room using Top Submerge Lance (TSL) Ausmelt Furnace (TSL Ausmelt) technology at the Muntok Metallurgical Unit of PT Timah Tbk, West Bangka Bangka Island.

05 Mar 2023, 12:51 WIB


Liputan6.com, Jakarta President Joko Widodo or Jokowi plans to inaugurate PT Timah Tbk's mining or smelter processing facility located in the Muntok metallurgical unit, West Bangka, Bangka Belitung Province in March. The smelter to be inaugurated is a new smelter and the first technology used in Southeast Asia.

Deputy Head of Muntok Metallurgical Unit of PT Timah Tbk Kopdi Saragih explained, the completed smelter uses Top Submerge Lance (TSL) Ausmelt Furnace (TSL Ausmelt) technology. This technology is already used by five other tin smelters in the world. But for Southeast Asia, PT Timah is the first company to use it.

Five other smelters that already use this technology are Minsur Peru in 2000. Followed later in 2012 in China, namely by Yunnan Tin and China Tin. Next up was Vinto Bolivia in 2014.

"This is the first modern factory in Southeast Asia for low grade concentrate tin smelting. Interestingly, fuel for this smelting can use coal which is widely available in Indonesia, "explained Kopdi Saragih.

Efficiency​

He then described the efficiency that can be obtained by smelting tin using TSL Ausmelt when compared to smelting with old or conventional furnaces.

For the old furnace, tin ore with a grade of 70 percent is needed, while for TSL Ausmelt, it can use tin ore with a grade of 40 percent. For the old furnace, which currently amounts to 6 pieces, it has a capacity of 28 thousand tons per year, while with TSL Ausmelt, only 1 unit has a capacity of up to 40 thousand tons per year.

In addition, if in the old furnace everything is worked manually, then with TSL Ausmelt this is all automatic with a control system. Of course, with this automated system, it can reduce Human Resources (HR).

Diresmikan Jokowi Bulan Depan, Smelter Baru PT Timah Siap Tancap Gas Produksi 40 Ribu Ton

Smelter unit peleburan yang sudah selesai dibangun PT Timah Tbk menggunakan teknologi Top Submerge Lance (TSL) Ausmelt Furnace (TSL Ausmelt).

www.liputan6.com

 

[Indos]

This is the giant project of Amman Mineral Rp 45 trillion​

One of the facilities of PT Amman Mineral Internasional. (Photo: Amman Minerals)


Rangga Prakoso
9 Mei 2023 | 21:01 WIB

JAKARTA, investor.id – PT Amman Mineral Internasional allocates a total budget of US $ 3.1 billion or equivalent to Rp 45.6 trillion for investment in smelter projects and supporting infrastructure in the form of expansion of production facilities and gas power plants.

Amman Mineral is a holding company of PT Amman Mineral Nusa Tenggara. Amman Mineral targets the three megaprojects to produce next

President Director of Amman Mineral International Alexander Ramlie said that the company's three projects are interrelated. The expansion of production facilities supports the needs of smelters. While gas power plants meet the needs of smelters and production facilities.

"If you ask about the seriousness of building a smelter, be serious. Capex for power plants is USD 500 million, processing plant expansion is USD 1.6 billion, and smelters are USD 1 billion," Alexander said in Jakarta, Tuesday (9/5/2023).

He emphasized that the expansion of production facilities was able to increase copper concentrate from 120 thousand tons per day to 250 thousand tons per day. While the electric power from gas power plants reaches 450 megawatts.

Also Read:​

Merdeka Battery (MBMA) acquires 60% stake in this company

According to Alexander, so far electricity needs are supplied from coal-fired power plants and fuel or diesel. However, because the company is committed to reducing emissions, the use of coal and fuel will certainly be reduced.

Instead, Amman will build a gas-powered power plant that requires $500 million. Amman had to build a power plant because the location of the mine and smelter was in a remote area, so it was far from PLN's supply.

The copper smelter has a capacity of 900 thousand tons of copper concentrate. "The progress of the smelter last January has exceeded 52%. Now everything is under construction and next year it will start operating," he explained.

Also Read:​

Indonesia to control 61% of Freeport's shares, when?

The smelter project began in 2019. However, Alexander revealed that the Covid-19 pandemic hampered the project. The reason is, the lockdown policy makes it difficult for experts and materials from abroad to enter Indonesia. Di said the smelter contractor came from China which he said had qualified experience. However, for smelter technology, use outotec.

"Feasibility studies and FEED are stopped all waiting for about 1-1.5 years. During the lockdown, there was still something to do, but it was not efficient because it was through zoom," he said.

The smelter project continues to show development progress with investment realization of more than 51% as of January 2023. This shows the company's commitment to continue the construction of the smelter, so that it can be completed by the end of 2024. The verification process by an independent third party is still ongoing.



Editor: Jauhari Mahardhika (jauhari@investor.co.id)

Inilah Proyek Raksasa Amman Mineral Rp 45 Triliun - Halaman 2

Amman Mineral Internasional mengalokasikan total anggaran US$ 3,1 miliar atau setara Rp 45,6 triliun untuk membangun proyek raksasa. - Halaman 2

investor.id

 

[Indos]

Indonesia's Bakrie Group seeks nickel mine, partners up for $9bln EV project​

January 22, 2023

The conglomerate launched a consortium last month with Chinese energy firm Envision and global commodity giant Glencore to explore investment into an industrial park for the global nickel supply chain

JAKARTA - Indonesian conglomerate Bakrie & Brothers is looking to acquire a nickel mine in the resource-rich island of Sulawesi to supply a planned integrated industrial park to produce electric vehicle batteries, an executive said on Friday.

Also known as the Bakrie Group, which has interests in coal mining, media and property, the conglomerate launched a consortium last month with Chinese energy firm Envision and global commodity giant Glencore to explore investment into an industrial park for the global nickel supply chain.

The company's chief executive Anindya Bakrie told a forum on the sidelines of the World Economic Forum in Davos this week the planned 2,000-hectare (nearly 5,000 acres) park will need $9 billion worth of investments for everything from nickel smelting to manufacturing batteries.

Gilarsi W. Setijono, chief executive of Bakrie Group's EV distributor unit PT VKTR Teknologi Mobilitas, said the Indonesian company plans to acquire a nickel mine in Central or Southeast Sulawesi to supply the park.

"[The mine will] have enough reserves for around 140 Gigawatt-hours (of batteries) in the next 25 years," he told reporters, without disclosing further details.

The consortium, called Indo-pacific Net-zero Battery-materials Consortium (INBC), has set a target to start producing nickel-based precusors - used to make EV batteries - by 2026, with an annual capacity equivalent to 120 GWh to be sold to Britain and European markets, Gilarsi said.

It also aims to produce 20 GWh worth of EV batteries per year by 2028 for both domestic and export markets, he said.

The consortium will launch a pre-feasibility study in March and firm up each company's investment afterwards, Gilarsi said, noting that Bakrie Group hopes to become a controlling stakeholder.

Separately, Bakrie's VTKR plans to launch a $60 million initial public offering in the first half of 2023 to invest in its own EV production, Gilarsi said.

Indonesia is keen capitalise on its rich nickel reserves to develop battery and EV industries. Once a major exporter of nickel ore, it stopped outbound shipments of the raw material in 2020 to make sure investors have enough for domestic processing.

Envision and Glencore did not immediately respond to request for comments.

(Reporting by Stefanno Sulaiman; Editing by Gayatri Suroyo and Kanupriya Kapoor)

Indonesia's Bakrie Group seeks nickel mine, partners up for $9bln EV project

The conglomerate launched a consortium last month with Chinese energy firm Envision and global commodity giant Glencore to explore investment into an industrial park for the global nickel supply chain

www.zawya.com

 

[Indos]

Kalla Group Expands Business to Electric Vehicle Batteries, Investment Rp 1.4 T​

PT Bukaka, one of Kalla Group business units

21 Mei 2022

Kalla Group wants to work on the electric vehicle (EV) battery ecosystem business . One of the companies built by Kalla Group is an EV battery production smelter, nickel sulfate located in Palopo, West Sulawesi.

"Investment in nickel sulfate smelters reaches USD 100 million or equivalent to Rp 1.4 trillion (assuming an exchange rate of Rp 14,860 per dollar)," said Kalla Group President Director Solihin J. Kalla at Penang Bistro Kota Kasablanka Jakarta, Saturday (21/5).

Unlike other smelters that use coal, this smelter uses hydropower. Solihin assessed that the largest nickel potential is in Sulawesi with the largest energy source.

"The greatest nickel potential is in Southeast Sulawesi, Central Sulawesi, and Halmahera. The electric vehicle market is actually decent but the supply is not there. Even though electric vehicle sales in Indonesia touched 1,000 cars," he said.

Solihin said battery production is still centered in China even though the raw materials come from Indonesia. With the smelter, Solihin is optimistic that all EV battery production can be carried out in the country.


The smelter built in Palopo is targeted for completion in early 2023. The company is venturing into EV vehicles, continued Solihin, by looking at electric vehicles in a greener world.

"We have aspirations to build a nickel-specific industrial area. This area focuses on nickel processing starting from nickel to one step before becoming a battery," he added.

To ensure the survival of people in the energy business area, Kalla actively holds various corporate system responsibilities that focus on ecosystem preservation.

https://kumparan.com/kumparanbisnis/kalla-group-ekspansi-bisnis-ke-baterai-kendaraan-listrik-investasinya-rp-1-4-t-1y7LYhGCT1r

 

[Indos]

Antam sells stake in Halmahera industrial park operator to CATL unit

A worker is busy at the Pomalaa nickel smelter in Kolaka, Southeast Sulawesi, which is operated by state-owned metal miner PT Aneka Tambang (Antam).(Antam/Antam)

Aditya Hadi (The Jakarta Post) PREMIUM
Jakarta ● Tue, May 9, 2023


PT Aneka Tambang (Antam) and its subsidiary PT International Mineral Capital (IMC) have signed a conditional share purchase agreement to sell some of their shares in PT Feni Haltim (FHT) to Hong Kong CBL Limited, a subsidiary of Ningbo Contemporary Brunp Lygend (CBL).

The value of the transaction was not disclosed. FHT is an Antam subsidiary that has permission to manage the industrial park in East Halmahera, North Maluku.

Antam sells stake in Halmahera industrial park operator to CATL unit

Antam said the transaction would accelerate the development of the national EV battery industry in the area.

www.thejakartapost.com