Nanshan Aluminum to build alumina project in Indonesia
2017-12-01 17:23:33 [Print]
Shandong Nanshan Aluminum Co., Ltd. (“Nanshan Aluminum”) announced on late 30th November that its previously disclosed share allotment plan has been approved at the general meeting of stockholders. According to the plan, Nanshan Aluminum is to issue shares to all shareholders by the proportion of no more than 3 shares per 10 shares for raising funds of nearly RMB5 billion (deducting expenses) which will be invested in 1mtpy alumina project located at Nanshan Industrial Park in Bintan Island, Indonesia.
The project is located in Bintan Island with rich bauxite recourses and is equipped with self-built power plant. Building factory near the source area leads to sharply decreased raw material cost; in addition, Indonesia holds a large amount of coal resource and reserves with favorable mining conditions and relatively low power cost. The project adopts the reliable and advanced Bayer process and increases the number of grading device in order to meet the requirement for producing metallurgical alumina sand, in accordance with the strategy of environmental protection and energy development as well as industrial policies of China and Indonesia. What’s more, through years of efforts, the company has had the resource, technology, personnel and management guaranteed for the implementation of the project.
Nanshan Aluminum revealed that the project has a construction period of 3 years and production period of 23 years. Based on estimation, the project can generate a gross annual profit of USD87.6929 million on average when reaching design capacity. The project has a IRR of 12.89% and investment payoff period of 9.49 years, and is financially feasible with relatively strong profitability.
The project is located in Bintan Island with rich bauxite recourses and is equipped with self-built power plant. Building factory near the source area leads to sharply decreased raw material cost; in addition, Indonesia holds a large amount of coal resource and reserves with favorable mining conditions and relatively low power cost. The project adopts the reliable and advanced Bayer process and increases the number of grading device in order to meet the requirement for producing metallurgical alumina sand, in accordance with the strategy of environmental protection and energy development as well as industrial policies of China and Indonesia. What’s more, through years of efforts, the company has had the resource, technology, personnel and management guaranteed for the implementation of the project.
Nanshan Aluminum revealed that the project has a construction period of 3 years and production period of 23 years. Based on estimation, the project can generate a gross annual profit of USD87.6929 million on average when reaching design capacity. The project has a IRR of 12.89% and investment payoff period of 9.49 years, and is financially feasible with relatively strong profitability.
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