Jakarta (ANTARA) \u2014 Arif Haendra, Director of Corporate Strategy,\nBusiness Development and Commercial at PT Indonesia Asahan Aluminium\n(Inalum), said downstream processing of aluminium has demonstrably\nincreased the added value of bauxite while boosting state revenue,\ncreating jobs and supporting regional economic growth.<\/p>\n
Arif explained that added value is generated by processing bauxite\ninto alumina, then into aluminium and derivative products with higher\neconomic value.<\/p>\n
\u201cBauxite is priced at US$40; when it is turned into alumina, the\nprice is around US$400. That means it has increased tenfold,\u201d Arif said,\nas quoted in Jakarta on Tuesday.<\/p>\n
He said processing bauxite into alumina costs about US$250\u2013300 per\ntonne. With alumina priced at around US$400 per tonne, the difference is\nabout US$100 per tonne, before other costs are taken into account.<\/p>\n
The value rises further when alumina is processed into aluminium, he\nsaid. Alumina priced at around US$400 per tonne can reach approximately\nUS$3,200\u20133,500 per tonne once converted into aluminium. Overall,\ndownstream processing from bauxite to aluminium can increase value by as\nmuch as 70 times.<\/p>\n
Arif said downstream processing also has wider economic effects\nthrough tax revenue, employment, transport activity and the growth of\neconomic activity around industrial areas.<\/p>\n
One example is Mempawah, West Kalimantan, where an alumina-processing\nindustry is being developed. Arif said the region\u2019s economic growth had\nincreased alongside the expansion of industry and supporting economic\nactivity.<\/p>\n
He said industrial development in Mempawah is projected to create\naround 130,000 new jobs. The alumina industry has also helped drive\ngrowth in port activity and the surrounding community\u2019s economic\nactivity.<\/p>\n
Beyond processing alumina into aluminium, he said, downstream\nindustry should be expanded to include products with a wider range of\nspecifications and uses.<\/p>\n
According to Arif, aluminium processed into billets can be used as\nfeedstock for extrusion to produce a range of goods, including aluminium\nprofiles for buildings.<\/p>\n
Aluminium can also be used to make electrical cables, automotive\ncomponents and materials for electric-vehicle batteries.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/inalum-downstreaming-has-proven-to-boost-added-value-and-create-jobs-1793073081", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }