“We’re building a smelter on Bintan Island, Riau province, which will process bauxite into aluminum. Construction began in early October and we expect to finish by October 2016,” said Shandong Nanshan Aluminium chairman, Song Jianbo.

The bauxite to supply the smelter would be collected from various mines in Riau, Jianbo said, adding that the smelter was expected to produce 2.1 million tons of alumina and 570,000 tons of ingots per year.

“We plan to export the alumina to various countries such as China, the US and Japan. The alumina will also be used in Indonesia,” he said.

Jianbo said, however, that he had not determined how much alumina would be exported and how much would be allocated for domestic use.

“We have to assess our needs first before we do that,” he said.

The alumina smelting grade produced by the smelter will be used to supply raw material needs for the Inalum smelter.

The demand for alumina smelting grade has reached about 500,000 tons a year.