JAKARTA (TheInsiderStories) – PT Well Harvest Winning Alumina Refinery, unit of PT Cita Mineral Investindo Tbk (IDX: CITA) under Harita Group, and Hongfa Weili Alumina Co., a Chinese alumina project in Indonesia, plans to build its second line production in West Kalimantan, said the company last week. The plant is the first bauxite smelter in Indonesia.
The one million-ton production line its expecting will be completed and put into production in 2020. Well Harvest is expected to reach an annual production capacity of 2 MT of smelting grade alumina by the end of 2020.
To finance the project, the company has been signed syndicated loan US$595 million led by DBS Bank of Singapore, with Export-Import Bank of China, Bank of China (Hong Kong), Singapore Overseas Chinese Bank, PT Bank OCBC NISP Tbk (IDX: NISP), Indonesian Eximbank, and BNP Paribas of France.
The construction of the smelter facility has been carried out since July 2013. According to Harita Group CEO, Lim Gunawan Hariyanto said, the company will try to meet the needs of alumina in the country of 500 thousand tons, including the needs from state-owned miner, PT Indonesia Asahan Aluminum.
Well Harvest project is jointly invested by China Hongqiao Group, a related listed company of Shandong Weiqiao Venture Group Co. Ltd., Harita Group, and Veolvest Investment (Hong Kong) Co. Ltd., with a planned annual investment of $1 billion.
The factory located in Ketapang, West Kalimantan. The production base covers an area of about 1,500 hectares, and gets Indonesian and China government’ attention. The project was rated as one of the three major projects that both countries led for economic cooperation at APEC Leadership Summit in 2014.