Nanshan Indonesia alumina capacity reaches 4mn t/yr as Indonesia alumina expansion accelerates

Nanshan Aluminium

Nanshan Indonesia alumina capacity reached a new milestone after the company launched phase two in Indonesia. Nanshan Indonesia alumina capacity now totals 4mn t/yr across the group after adding 1mn t/yr. As a result, Indonesia alumina expansion continues to reshape regional refining supply.

Nanshan’s Indonesian subsidiary, PT Bintan Alumina Indonesia, now holds 2mn t/yr of alumina capacity. The first 1mn t/yr unit began operating in the third quarter this year. Meanwhile, the phase-two start strengthens Nanshan’s feedstock security for the wider aluminium value chain.

Why Indonesia alumina expansion is now a strategic supply move

Indonesia alumina expansion gives Chinese producers a route around domestic capacity limits. China maintains a 45mn t ceiling for aluminium capacity. Therefore, producers increasingly place upstream assets offshore to lock in bauxite and refining capacity.

Nanshan also built a modern port to improve export logistics and reduce bottlenecks. The port supports larger-scale loading and more predictable shipping cycles. As a result, Nanshan Indonesia alumina capacity can translate into more stable deliveries for customers.

Cost advantages deepen as energy and raw materials align locally

Local bauxite and coal availability supports a lower-cost alumina platform in Indonesia. Nanshan also pointed to a stable energy supply system at the site. Meanwhile, integrated infrastructure can reduce unit costs and improve operating resilience.

Chinese aluminium investment Indonesia has expanded as companies pursue supply security and policy alignment. China and Indonesia also agreed to deepen cooperation in critical minerals and renewable energy. Therefore, more projects may follow as investors seek long-term refining optionality.

The Metalnomist Commentary

Nanshan’s scale-up strengthens Southeast Asia’s role in the global alumina supply chain. However, competitiveness will hinge on energy pricing and permitting stability. The winners will integrate logistics, power, and bauxite into one controllable system.