MIND ID Strengthens Energy Transition Commitment Through Bauxite Downstreaming

Jakarta - MIND ID or Mining Industry Indonesia, the Holding State-Owned Enterprise for the Mining Industry, stressed its commitment to support national energy transition through the strengthening of domestic integrated bauxite downstreaming. 

This step constitutes part of the corporate strategy in raising the added value of Indonesia’s mineral resources while at the same time, boosting sustainably based industrialization.

In managing national strategic mineral, from total bauxite reserve of 198.43 million tons, the MIND ID Group produces 1.33 million tons in 2024.

With the cooperation of PT Aneka Tambang Tbk (ANTAM) and PT Indonesia Asahan Aluminium (INALUM), the MIND ID Group now has the Smelter Grade Alumina Refinery (SGAR) at Mempawah, West Kalimantan.

The facility has a production capacity of 1 million tons of alumina per year, all of which comes from the utilization of domestic bauxite reserves. The alumina product produced by SGAR becomes the main material to produce aluminium by INALUM at Kuala Tanjung.

The MIND ID Group is also in the midst of preparing the SGAR Phase II facility development which will be able to produce an additional 1 million tons of alumina per year, and a new aluminium smelter in Mempawah with a capacity of 600 thousand tons per year.

This value chain integration positions MIND ID as the main driver of bauxite downstreaming, which not only strengthens national industries, but also support the achievement of Indonesia’s energy transition target.

MIND ID Corporate Secretary, Pria Utama, explained that energy transition is a strategic need of Indonesia in facing the challenges of global climate change. By optimizing mineral natural wealth, Indonesia can strengthen its position as key player in the world’s clean energy industry supply chain.

“We are consistently supporting the creation of better future civilization advancement. The bauxite downstreaming, which is implemented in an integrated manner, is one of the keys to hasten energy transition in Indonesia,” said Pria.

Pria added that aluminium is a key material in energy transition technology due to its light, corrosion resistant nature and can be recycled. In one solar panel facility with a capacity of 1 MW, 21 tons of aluminium is needed for the installation frame and system.

Moreover, aluminium also has an important role in the production of wind turbines, forming the blade structure and main frame, as well as compiling up to 30% of total weight of electric vehicle battery and electrical car body component.

“MIND ID is committed to not only explore natural resources, but also ensure their added value, until they become products of strategic value. We believe that sustainable industrialization will become the foundation for the advancement of Indonesia’s future civilization,” concluded Pria.