Borneo Alumina Loses US$450 Mln Due to Stalled Smelter Project

Summary

PT Borneo Alumina Indonesia (PT BAI) revealed the Smelter Grade Alumina Refinery (SGAR) Menpawah had been stalled for 16 months. The company is facing an estimated potential loss of US$450 million in revenues. "Per month, the potential revenue loss is US$28 million," BAI Technical Director Darwin Saleh Siregar said in a hearing with the House Energy Commission on Tuesday.

BAI estimates that the SGAR Mempawah project will be completed in 2024, pushed back from the initial estimates in July 2023. In the aftermath of the delayed SGAR Mempawah project, BAI suffered from monthly fixed cost losses, in addition to investment loss. This is because the MIND ID joint venture with PT Aneka Tambang Tbk still issues fixed costs every month.

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