Bauxite Downstreaming Claimed to Pave the Way for Strategic Mineral Development

The downstreaming of bauxite is considered to open the path for Indonesia to develop value-added strategic minerals while strengthening the foundation of the national industry. This development is directed not only at increasing the production of primary products but also at optimising associated minerals and by-products from the processing stage. This strengthening of downstreaming is reflected in the export of 3,013.5 tonnes of Alumina Hydroxide and 1,740 tonnes of Chemical Grade Alumina (CGA) from Dwikora Port, Pontianak, West Kalimantan, to South Korea, Japan, Taiwan, and China. MIND ID Vice President Director Dany Amrul Ichdan stated that mineral downstream development must be continued by optimising the opportunities that arise from each processing stage. One opportunity that can be developed comes from associated minerals to generate new economic value. “If Indonesia can separate Rare Earth Elements (REE) from their associated minerals economically and efficiently, Indonesia has essentially become an REE processing country,” Dany said in a statement in Jakarta, quoted on Monday (10/8/2026). He explained that REE can be found in natural minerals as well as several non-conventional sources, such as bauxite residue, nickel slag, and tin processing by-products. The development of REE is becoming increasingly strategic because these minerals are needed by various future industries, including electric vehicles, renewable energy, electronics, and high-tech manufacturing. According to Dany, the development of REE still requires regulatory certainty, especially since a number of these elements are present as associated minerals in very low grades. Therefore, a clear and proportional content threshold is needed to distinguish REE as a primary mineral from associated elements in export commodities. This condition is important to note because the presence of REE in low grades does not automatically make a commodity feasible for extraction as an REE product. Elements such as cerium and lanthanum, for example, can be found in parts per million (ppm) units. MIND ID, together with the Mineral Industry Agency (BIM) and supported by the National Research and Innovation Agency (BRIN), is currently drafting a national REE processing and purification technology roadmap. This drafting includes mapping raw material sources and the technology required to develop domestic REE processing capabilities. Dany stated that strengthening the processing of strategic minerals is part of the effort to build national industrial independence. Collaboration with various stakeholders is also continuously being opened to encourage the birth of new sources of economic growth for Indonesia.