UC Rusal to Build Bauxite Processing Plant in Kalimantan

Russian aluminium production giant, UC Rusal, is preparing to undertake a downstream project to transform bauxite into alumina in the Kalimantan region. The certainty of this mining industry investment was announced by the Minister of Energy and Mineral Resources, Bahlil Lahadalia, in Jakarta on Thursday (11/09/2026).

The administrative process to realise the construction of this processing facility is reported to have entered its final stages. In its implementation, the global company is confirmed to be partnering with domestic business players.

“Yes, that is with Rusal. They will build downstreaming from bauxite to become alumina. And that is in the Kalimantan area. Regarding the licensing, it is almost at the final stage,” said Bemma Bahlil when met at the Ministry of Energy and Mineral Resources Office, Jakarta, Thursday (11/09/2026).

Although the certainty of the partnership has been confirmed, the ministry is still keeping the identity of the local business entities involved in this large-scale project confidential.

“And we are indeed conducting collaboration, and they are working together with domestic entrepreneurs,” he said.

UC Rusal’s involvement in the national industrial landscape was previously mentioned by President Prabowo Subianto while attending the Eastern Economic Forum in Vladivostok, Russia, on Thursday (03/09/2026). The Head of State emphasised that the expansion of this foreign-capital company would be carried out massively through strategic partnerships.

“We are also moving far ahead in the processing sector; for example, in the mining sector, we are working with Rusal, which I believe is the largest aluminium company in the world. Rusal will enter Indonesia on a massive scale. Rusal will develop processing plants together with Indonesian business groups,” stated Prabowo.

In addition to projects in the mineral mining sector, bilateral cooperation between the two countries also covers the food security and energy sectors through fertiliser production agreements.

“Today, a Memorandum of Understanding (MoU) has also been signed between our fertiliser company and one of the largest business groups in Russia for joint investment in a fertiliser production project using gas as raw material in the Russian Far East,” said Prabowo.