Indonesia doubles down on coal to power its aluminum expansion
Resource-rich Indonesia is expanding its production of aluminum as the Iran war disrupts supplies, relying on its abundant coal reserves to power new smelters that run contrary to efforts to curb carbon emissions that cause climate change. Prices have risen due to fuel shortfalls and attacks on infrastructure that have slowed production in the Middle ...
Indonesia is increasing its focus on aluminum production as the Iran conflict disrupts global aluminum supplies. The country relies on abundant coal reserves to power new aluminum smelters, a move that contradicts global efforts to reduce carbon emissions. Prices for aluminum have risen due to supply shortages and infrastructure attacks in the Middle East.
China, which produces 60% of the world's aluminum, is investing heavily in Indonesia's aluminum sector, with plans for captive coal plants to exclusively power smelters. Critics argue that these plans contradict Indonesia's own climate commitments and could harm local communities due to increased air pollution.
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