The two companies signed a corresponding agreement for Inalum’s Kuala Tanjung aluminium smelter expansion project. EGA also has the right to take a minority equity stake in the project, and to offtake much of the produced metal. EGA’s requirement for an investment or metal offtake is that the project uses renewable power.
Expansion project aims to increase capacity by over 400,000 tpy
The Kuala Tanjung aluminium smelter, located in North Sumatra, uses electricity generated with hydropower. The expansion project is expected to have an capacity of more than 400,000 tpy, depending on the outcome of a bankable feasibility study which will now be jointly funded by EGA and Inalum.
EGA has developed its own smelting technology in the UAE for more than 30 years, and was the first UAE industrial company to license its core process technology internationally in a deal with Aluminium Bahrain in 2016. Abdulnasser Bin Kalban, CEO of EGA, said: “This agreement is an important step forward in our cooperation with Inalum, and brings closer the deployment of our UAE-developed technology in Indonesia. A potential investment in the Kuala Tanjung brownfield expansion and the offtake of metal would progress our growth in low-carbon aluminium.”
Collaboration on the upgrade of existing aluminium smelter
EGA and Inalum are already working together on the potential upgrade of the existing aluminium smelter at Kuala Tanjung under an agreement signed in 2020. The project aims to boost production from the existing reduction cells by around 20,000 tpy or 10 %. Design work for a pilot section of the project has been completed. EGA has completed a series of similar technology upgrades across its sites in Jebel Ali and Al Taweelah over recent decades.
In 2020, EGA signed an agreement with NEO Aluminio Colombia which could lead to the export of EGA technology for the development of the South American country’s first aluminium production facility.