JAKARTA (TheInsiderStories) – The holding of state mining firms, PT Indonesia Asahan Aluminum (MIND ID) signed a deal with Emirates Global Aluminum (EGA), the largest aluminum producer in the United Arab Emirates (UEA). The smelter grade alumina refiners is estimating need costs around US$800 million.
According to the ambassador of Indonesia to the UAE, Husin Bagis, both will forming a joint venture to build a greenfield aluminum smelter in Mempawah, West Kalimantan and a brownfield upgrade of a smelter in North Sumatra. This project is a continuation of the memorandum of understanding has been signed in front of the two leaders in Abu Dhabi on Jan. 21, 2020.
Beside with EGA, MIND ID also supported the option of cooperation between PT Freeport Indonesia (PTFI) and a Chinese company, Tsingshan Steel, to build a copper smelter in Weda Bay, Halmahera.
The integrated aluminum company also contributed to the capital expenditure for the the subsidiary’ smelter construction plan in the Java Integrated Industrial and Port Estate in Gresik, East Java. The investment value of the projects around $3 billion and the parent contributed around $1.5 billion.
Inalum has successfully issued global bond worth of $2.5 billion with a 5, 10, and 30 years of tenures with coupon rate 4.75 percent, 5.45 percent, and 5.8 percent, respectively. The miner has received a Baa2 rating from Moody’s Investor Services and BBB- from Fitch.
It said, part of the proceeds will use to refinances mature bonds worth of $1 billion and the rest for various strategic projects development, including the greenfield smelter in Mempawah with a capacity of one million tones per year, South Sumatra Mine Mouth 8, and coal gasification plant project to become DME in Tanjung Enim, South Sumatera.
MIND ID is an Indonesian state-owned company specialized in aluminum smelting. The company manages the huge potential of electricity generated from the Asahan River in North Sumatera. The company was established in 1976 as joint venture company between the Indonesian government and Nippon Asahan Aluminium Co., Ltd., a consortium of Japanese companies, before it was fully acquired by the government in 2013.
In 2017, the manufacturer was appointed by the government as the holding company for the state’s mining assets, and the government transferred its equity interests in PT Aneka Tambang Tbk (IDX: ANTM), PT Bukit Asam Tbk (IDX: PTBA), PT Timah Tbk (IDX: TINS), and PTFI to the company. The miner is 100 percent owned by the government through the ministry of state own enterprises.
While EGA based is an aluminium conglomerate created by the merger between Dubai Aluminium and Emirates Aluminium in 2013. The miner had an estimated enterprise value of $15 billion at the time the merger took place.
The firm is owned equally by Mubadala Development Company of Abu Dhabi and Investment Corporation of Dubai. Emirates Global Aluminium holds interests in bauxite, alumina and primary aluminium smelting.
Written by Editorial Staff, Email: email@example.com