Inalum, a state-owned company, has raised its aluminum production target for 2024 to 274,140 tons, up from 250,000 tons in 2023. The Chief Executive Officer, Danny Praditya, outlined plans to divide this target into three categories: Ingot, Alloy, and Billet, prioritizing these for the domestic market. Praditya emphasized their aim to achieve the 274,140-ton target this year, primarily focusing on Ingot, Billet, and Alloy production. He clarified that the priority lies within the domestic market, with any surplus intended for exportation. The detailed breakdown of their targets includes 197,407 tons for Ingot, 39,420 tons for Alloy, and 29,237 tons for Billet for the current year. As of January 5, 2024, Inalum recorded an overall production of 2,647 tons.
Regarding the aluminum supply (alumina feedstock), Danny mentioned the current sourcing from both domestic and imported markets, emphasizing ongoing procurement activities. Looking ahead, Inalum plans to source alumina from the Smelter Grade Alumina Refinery (SGAR) project in Mempawah, West Kalimantan, a venture set to commence operations in the first half of 2024. Danny expressed optimism about SGAR's operation, targeting its commissioning in the first half of 2024, projecting the commencement of production and initial delivery in September or October 2024. Once operational, they aim to source their ore and bauxite either internally or from clients. He concluded by affirming their strategy to utilize SGAR for their supply chain once production begins, relying on the facility for ore and bauxite, either sourced independently or from clients' products. This shift is anticipated to contribute significantly to their production capacity in meeting the ambitious 2024 aluminum output target.
