INALUM and EGA Cooperation Agreement on the Potential Use of Brownfield Aluminium Technology in Indonesia

EGA signs an agreement with INALUM in which both parties will jointly develop the expansion of Inalum’s brownfield smelter at Kuala Tanjung, North Sumatra.

Nusa Dua, 14 November 2022 – PT Indonesia Asahan Aluminium (INALUM) and Emirates Global Aluminium (EGA), the largest industrial company outside of oil and gas, from the United Arab Emirates, have signed an agreement for the feasibility study related to the expansion of Inalum’s brownfield smelter at Kuala Tanjung, North Sumatera.

This agreement gives EGA the exclusive rights to license the technology developed by UAE to INALUM for the expansion of the brownfield aluminium smelter, an Indonesian company which has the potential in aluminium smelter in Kuala Tanjung, North Sumatra.

The agreement was signed by INALUM President Director, Hendi Prio Santoso, and EGA Chief Executive Officer, Abdulnasser Bin Kalban, at the G20 Summit di Bali, Monday (14/11/2022). Based on the agreement, EGA will have the exclusive rights to license the DX+ Ultra smelting technology to INALUM, which is the newest industrial technology of the international company.

The commercial license is for the expansion of the Kuala Tanjung brownfield smelter in North Sumatra, if the project is proven feasible.

EGA has developed the smelting technology in the UAE for more than 30 years, and is the first UAE company licensing the key process technology internationally, in an agreement with Aluminium Bahrain in 2016.

EGA’s terms for investment or metal retrieval is that the project prioritizes the use of renewable energy. The current aluminium smelting plant at Kuala Tanjung uses hydro powered electricity.

It is hoped that the expansion project will produce more than 400 thousand tons of aluminium per year, depending on the results of the bandkable feasibility study which will be financed jointly by EGA and INALUM.

“This agreement is an important step forward in our cooperation with INALUM, and brings the spread of technology developed by UAE closer in Indonesia,” said EGA Chief Executive Officer, Abdulnasser Bin Kalban.

He said that the potential investment in the expansion of the brownfield at Kala Tanjung, and the sale of metal, will elevate the growth in low carbon aluminium, enabling modern life throughout the world, while at the same time, protecting the earth for the next generation.

“I thank INALUM for the ongoing trust to EGA in line with the partnership between both our countries.”

INALUM President Director, Hendri Prio Santoso, said that this agreement is expected to underscore EGA as INALUM’s partner of choice for the brownfield expansion in Kuala Tanjung, based on EGA’s smelting technology efficiency and its experience transfering the technology internationally, and the potential partnership of the company as investor and or offtaker of metal.

“We see going forward to the successful conclusion of the bankable feasibility study as the next step before starting construction,” he said.

For information, INALUM and EGA has cooperated in raising the potential on the use of the EGA aluminium smelter technology in Kuala Tanjung, based on the agreement signed in 2020.