Russia's Vi Holding to invest USD 500 million in Indonesia alumina plant

Russia's industrial group Vi Holding will invest USD 500 million in an alumina refinery in Indonesia that could be built in the next three to four years.

Mr Denis Manturov trade minister of Russia said that Southeast Asia's biggest economy introduced a controversial mineral ore export ban in January, aimed at forcing miners to move up the value chain by processing minerals in Indonesia.

The halting of USD 3 billion of annual nickel ore and bauxite exports lifted the price of nickel and helped support aluminium boosting the fortunes of Russia's United Company Rusal and Norilsk Nickel.

Mr Manturov said, after meeting with Mr Joko Widodo president of Indonesia said that “The new alumina plant is expected to have a capacity of 1 million tonnes per year with shipments bound for China.”

He said that "In Indonesia, Vi Holding will have a project for producing alumina, which will be exported to their industry in China. Total investment in China is USD 3 billion and specific for Indonesia, their investment will be approximately USD 500 million."

He added that the Indonesian alumina project will use Russian technology and is estimated to be completed within three or four years with annual production of about 1 million tonnes.