Jakarta-Government plan to stop the export of raw mineral mines are able to invite investors to build a processing plant or a smelter in Indonesia. One is the Mubadala Development Company is planning to establish an aluminum smelter in West Kalimantan ingots worth U.S. $ 500 million.

The government plans ban on exports of minerals will be conducted starting in 2014. The policy in accordance with Law No. 4 / 2009 on Mineral and Coal. But before it is prohibited in total, the Ministry of Industry is currently preparing proposals customs exit (BK) is high on the bauxite, copper, nickel, iron ore and iron sand.

Director General of the Ministry of Industry Manufacturing Industry Base, Panggah Susanto said the investment made by Mubadala is still in the exploratory stage. "Later this month, Mubadala will come to Indonesia to discuss it further," said Panggah weekend.

Mubadala wants to expand its business by building a smelter processing of bauxite into alumina to aluminum ingots in Indonesia. Smelter will be built in West Kalimantan with a capacity of around 350,000 tonnes of aluminum ingots per year.

In the construction of the smelter, the possibility of Mubadala will work with local company PT Antam Tbk (Antam). They have to process about 1.5 million tonnes of bauxite. The output was, half will be exported to their factory in the United Arab Emirates and the other half will be sold to Inalum.

But Antam's corporate secretary, Ben claimed to have heard Budi Satriyo Antam plans cooperation with Mubadala. "They have not held talks with Antam," said Ben.

Bimo has not dared to explain the possibility of cooperation with Mubadala before there is a definite conversation. On the other hand, Bimo said Antam is currently building its own factory in Tayan Chemical Grade Alumina, West Kalimantan. The project was built by PT Indonesia Chemical Alumina which is a joint venture between Showa Denko Antam and Japan. Value of project investment reached U.S. $ 450 million. The project is targeted to be operational in 2014 when the policy ban on exports of raw mineral enforced.

In addition to Mubadala and Antam, the construction of the smelter is also done by companies from China, Ningxia Hengshun Smelter Group. They will build a smelter to process nickel ore and looking for the right location. Another company that builds of Jogja Magasa Iron pig iron smelter partnered with Australian company, Indo Mines Limited.