Jakarta-If the government sets an export ban since the first crude minerals, mineral smelting industry in Indonesia could develop. See it, spread the news since the government plans to ban export of raw minerals in 2014, foreign investors are now competing to invest in mineral smelting in this country.

Latest news, one investor who will enter Indonesia is the Mubadala Development Company of United Arab Emirates (UAE). Mubadala plans to set up a smelter (smelter) bauxite to be processed into aluminum ingots. Location they choose to invest U.S. $ 500 million is West Kalimantan.

Director General Manufacturing Industry Base (BIM) of the Ministry of Industry Panggah Susanto said Mubadala's investment plan is still in the exploratory stage. "Later this month Mubadala will come to Indonesia to discuss this matter further," said Panggah.

According Panggah, bauxite smelting industry will have a production capacity of around 350,000 tonnes of aluminum ingots per year. To produce aluminum ingots a lot of it, they have to process 1.5 million tonnes of bauxite.
In the construction of this smelter later, according to Panggah, Mubadala will work closely with local company PT Antam Tbk (Antam). Later, half of their production will be exported to the Mubadala-owned factories in the UAE. Other half will be sold to Inalum.

Just a reminder, the Indonesian government would ban the export of raw minerals starting in 2014. This policy is in accordance with Law No. 4 / 2009 on Mineral and Coal. Now, the Ministry of Industry is also currently preparing proposals customs exit (BK) high which will apply to bauxite, copper, nickel, iron ore and iron sand.
Antam trailer Showa

Although sound convincing, Mubadala exploratory stage is still too early. Evidently, Antam corporate secretary Bimo Budi Satriyo claimed not to know to know the plan of cooperation. "They have not held talks with Antam," said Ben.

Antam itself, says Ben, is currently building a plant in Tayan Chemical Grade Alumina, West Kalimantan. The project was built by PT Indonesia Chemical Alumina, the joint venture company between Antam with Showa Denko of Japan. Value of the project investment reached U.S. $ 450 million. This project is targeted to be operational in 2014, when the ban on export of raw minerals policy truly effective.

Some mineral smelting investment plans are increasingly being heard. Prior to this, in addition to Ningxia Hengshun Smelter Group from China who want to build a nickel smelter, Jogja Magasa Iron will also build a smelting pig iron partnered with Indo Mines Limited of Australia.