The Hainan Joint Enterprise Business Service Co. Ltd. and its Indonesian partner company, PT Indopura Resources, plan to construct a bauxite refinery worth US$700 million in Batam, Riau Islands.
 
The factory is expected to employ 5,000 workers.
 
PT Indopura Resources director Cedric Lam, its managing director Arief Winata and Hainan Joint Enterprise managing director Xi Cheng Xian said in a press conference on Wednesday that the factory was scheduled to begin operating in 2014.
 
According to Arief, the construction of the factory will take one year to complete. “The land is available for the construction of the refinery,” he said.
 
"We chose Batam because the city has a sufficient electricity supply and clean water,” he added.
 
The refinery is expected to distill 2.7 metric tons of bauxite into alumina every year. Arief said the export value of alumina could be five times higher than the raw bauxite.
 
"We are aiming to export it to China. But, there are alternative opportunities for the alumina to be exported to other countries,” Arief said.
 

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