According to the company, the smelter will be able to process up to 300,000 metric tons of chemical-grade alumina each year from bauxite.

Construction of the $490 million smelter began in June 2011 and it is expected to generate revenue that would offset up to $300 million in potential losses that the company could incur after a ban on unprocessed mineral exports takes effect at the start of 2014.

The long-discussed policy is intended to encourage investment that builds Indonesia’s ability to add value in the commodification and export of the nation’s natural mineral resources.

The Tayan smelter will be controlled by Indonesia Chemical Alumina, a joint venture between Antam and Japanese chemical engineering firm Showa Denko.

 Antam owns an 80% stake in the venture; Showa Denko controls the remaining 20%.

The smelter’s construction was financed by funds from the shareholders and loans from the Japan Bank for International Cooperation and a consortium of other Japanese banks.