Emirates Global Aluminium, & Indonesia Asahan Aluminium (Persero) INALUM have signed an agreement granting EGA the exclusive right to licence its UAE-developed technology to INALUM for the Indonesian company’s brownfield aluminium smelter expansion, and giving EGA the right to invest in the project and offtake metal. Under the agreement, EGA will have the exclusive right to licence its DX+ Ultra smelting technology to INALUM, the company’s latest industrialised technology, on a commercial basis for the brownfield expansion of the Kuala Tanjung smelter in North Sumatra, should the project prove feasible. EGA has developed its own smelting technology in the UAE for more than 30 years, and was the first UAE industrial company to license its core process technology internationally in a deal with Aluminium Bahrain in 2016. EGA also has the right to take a minority equity stake in the project, and to offtake much of the produced metal. EGA’s requirement for an investment or metal offtake is that the project uses renewable power. The existing aluminium Kuala Tanjung smelter uses electricity generated with hydropower. The expansion project is expected to have a capacity of more than 400 thousand tonnes of aluminium per year, depending on the outcome of a bankable feasibility study which will now be jointly funded by EGA and INALUM. EGA and INALUM are already working together on the potential upgrade using EGA technological know-how of the existing aluminium smelter at Kuala Tanjung, under an agreement signed in 2020. The project aims to boost production from the existing reduction cells by around 20,000 tonnes per year or approximately 10 per cent. Design work for a pilot section of the project has been completed.
Emirates Global Aluminium, & Indonesia Asahan Aluminium (Persero) INALUM have signed an agreement granting EGA the exclusive right to licence its UAE-developed technology to INALUM for the Indonesian company’s brownfield aluminium smelter expansion, and giving EGA the right to invest in the project and offtake metal. Under the agreement, EGA will have the exclusive right to licence its DX+ Ultra smelting technology to INALUM, the company’s latest industrialised technology, on a commercial basis for the brownfield expansion of the Kuala Tanjung smelter in North Sumatra, should the project prove feasible. EGA has developed its own smelting technology in the UAE for more than 30 years, and was the first UAE industrial company to license its core process technology internationally in a deal with Aluminium Bahrain in 2016. EGA also has the right to take a minority equity stake in the project, and to offtake much of the produced metal. EGA’s requirement for an investment or metal offtake is that the project uses renewable power. The existing aluminium Kuala Tanjung smelter uses electricity generated with hydropower. The expansion project is expected to have a capacity of more than 400 thousand tonnes of aluminium per year, depending on the outcome of a bankable feasibility study which will now be jointly funded by EGA and INALUM. EGA and INALUM are already working together on the potential upgrade using EGA technological know-how of the existing aluminium smelter at Kuala Tanjung, under an agreement signed in 2020. The project aims to boost production from the existing reduction cells by around 20,000 tonnes per year or approximately 10 per cent. Design work for a pilot section of the project has been completed.
