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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.
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Associated Press NewsAssociated Press News
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Indonesia doubles down on coal to power its aluminum expansion

The Iran war has dented global supplies of aluminum, raising production costs for the metal used in buildings, cars and airplanes, among other things.

·New York, United States
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  • 75% of the sources lean Left
75% Left

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Winnipeg Free Press broke the news in Winnipeg, Canada on Tuesday, September 1, 2026.
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