Chinese companies invest in about three-quarters of planned Indonesian smelters
Resource-rich Indonesia is expanding its production of aluminum as the Iran war disrupts supplies, relying on its abundant coal reserves to power new smelters, the Associated Press reported Tuesday from Bangkok.
The expansion runs contrary to efforts to curb carbon emissions that cause climate change, according to the report.
Prices for the lightweight, silverish metal — used in everything from kitchen foil and power lines to smartphones and cars — have risen because of fuel shortfalls and attacks on infrastructure that have slowed production in the Middle East, AP reported.
Indonesia is working to raise its limited manufacturing capacity for the metal, the report said.
In that effort, the country has a strong ally in China, which makes 60% of the world’s aluminum but is keen to reduce pollution and emissions from smelters on its own shores.
Chinese companies have invested in about three-quarters of the planned Indonesian projects, according to the report, which describes Indonesia’s aluminum plans as ambitious.