The emperors of China make Indonesia a giant in the aluminum industry

Senior Chinese business people strengthen the aluminum industry in Indonesia through the establishment of billions of dollars, which is very similar to the bets launched about a decade before the country’s wealth of nickel, threatening to reform the global aluminum market. In light of the restrictions imposed on local production, businesses such as ‘Tsingshan Holding’ are on their way to billionaire Xiang Guangda, and ‘China Hongqiao’ and ‘Shandong Nanshan aluminum’ owned by Songgia Gianu, to save investments in the creation of a new mosque. Goldman Sachs estimates that aluminum production in Indonesia could rise five times by the end of the contract. The question that traders in the metal market now asks can continue to flow to Indonesia without damaging the future of intense energy consumption, which is an indispensable metal in everything from soft drink packages to robots and electric cars. Nickel offers an early warning to the aluminum industry, which is a warning lesson. About a decade before, Indonesia represented 7% of the total minerals produced by the mines in the world, while today it has about 60%, thanks to the cheap electricity based on coal and Chinese milestones. This rapid growth, which was not estimated by the largest mineral businesses such as the BHP group, has the right to estimate it, which forced it to close its operations in Australia and other places. Even the Indonesian industry itself began to suffer from the pressure arising from the rapid growth. “Over the next five years, Indonesia will become an important center for the global aluminum industry,” says Alan Clark, director of the CM Group Consulting Company. And “It’s really interesting to compare what happened in the world’s nikkel sector and what’s happening now.” Although the Indonesia reserves of Boxett, the raw material used in aluminum production, are in no way to fit the low -quality nickel -wealthy that has changed the balance of the industry, thanks to technological innovation, it remains sufficient to support the big boy -in -industries by supporting low labor costs and dependence on coal power plants. State support to accelerate the growth of the Indonesia’s leaders, looking forward to the development of an industrial sector that provides jobs and contributes to the growth of the economy, the possibility of repeating the successful nickel experience, and this ambition has urged the president of Indonesia with the “local manufacturing” policy, which includes School meals for everyone Sovereign Wealth Fund. The cost of building one filter is estimated at about one billion dollars, which is a heavy bet, but it is a price that many Chinese businesses consider appropriate to ensure the necessary raw materials. During this year alone, three new ranks from Alumina, an essential component of aluminum production, will begin its operational operations. Three other ranks are expected to come into effect by the end of 2027, which will contribute to increasing the productive capacity of Indonesia by more than five times, and according to Cru Group estimates to the ranks of senior international producers. Indonesia has made a remarkable progress in the field of aluminum melting, as two factories are currently working in the country, and four additional factories are expected to enter the end of the contract, according to estimates of “Goldman Sachs”. Indonesia imposed restrictions on the export of box, which initially urged China to go to Guinea, the world’s largest producer of this raw material. But Guinea, located in West Africa, began to display its dominance of supplies by canceling mining rights for businesses that refuse to move forward in building refineries in his field, a step that has strengthened China’s desire to diversify its sources more. In this context, BTAN Mining CEO Agustinos Tan said that some Chinese metal investors offered the transfer of their factories to Indonesia, a piece for one or financial support to local businesses that could not obtain financing. “Some factories close their doors, and they have offered the purchase of machines,” says Tan, whose company plans to start building its own refineries next year. And “It’s better to be away from the final user of the product, instead of being away from the raw material.” Large investments of “tsingshan” among the most important Chinese investors who emphasize the company “Tsingshan”, the rust -free steel giant, which led the rapid expansion in the Nikkelel sector in Indonesia thanks to the enormous size and the sharp focus on reducing costs. The company launched the first aluminum insurance in 2023, and it is scheduled to start much larger production next year. “When Tsingshan entered the aluminum sector, everyone was surprised … It makes their activities possible,” says Andy Farida, an aluminum sector analyst at FastMarkets. Many developments will depend on the compliance with these businesses to their plans, even if economic challenges continue in the short term to push aluminum prices. City Group estimates that the global offer, including from Indonesia, will not see a significant increase if the price of the metal remains near its current levels, about $ 2500 per ton. Leo Derevi, a veteran analyst who previously worked for the Rio Tinto and the Chinese Research Corporation “Antaike”: “Many people in the market believe that most of these plans will never be reached, pointing out that there are fundamental questions about obtaining electricity supply. Construction costs will end up on a cul -de -sac. “The coal from which Indonesia has an abundance to operate the industry, just as it happened in the Nikkel Sector. cannot achieve.