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Indonesia doubles down on coal to power its aluminum expansion
Indonesia is expanding its aluminum production by relying heavily on coal-powered smelters, aiming to increase output from 1 million metric tons in 2025 to 14.5 million metric tons by 2030.
The Iran war has disrupted global aluminum supplies, causing prices to rise as high as $3,780 per metric ton in June before settling near $3,400.
China has invested up to $6 billion in Indonesia's aluminum industry and plans further investments abroad after capping domestic aluminum production.
Indonesia's expansion of coal-powered aluminum projects may lead to depletion of its bauxite reserves in less than 12 years and contributes to global greenhouse gas emissions.