Chinese firm invests $4 billion in alumina project in Indonesia

Sichuan Tianfu Xinchuang Group recently announced that it will develop an alumina project in Central Kalimantan through its newly established subsidiary, PT Progressive Indonesia Alumina (PIA).In its latest corporate announcement, the group confirmed that PIA was incorporated in 2024 as a special purpose entity to boost the group's presence in Indonesia's downstream minerals sector, with the project site located in Sampit Town, Central Kalimantan Province. According to the announcement, the first phase of the project will see the construction of a smelter-grade alumina plant with an annual capacity of 1 million tons, together with logistics, energy and plant infrastructure networks. The total investment in the project is expected to exceed US$540 million (approximately RMB 3.97 billion). According to the plan, the alumina plant will build a vertically integrated industrial chain from bauxite mining to refining production. Once operational, the project is expected to support Indonesia's national goal of reducing its dependence on bauxite exports and establishing a domestic value-added mineral ecosystem. Founded in 2003, Sichuan Tianfu Xinchuang Group has businesses in metallurgy, oil and gas drilling, and lithium battery materials, with annual revenues of nearly US$1 billion and more than 2,000 employees worldwide. The alumina project is its first foray into the deep processing of mineral resources in Indonesia.