a Chinese solar panel manufacturer, plans to invest $3 billion to secure silica sand supplies in Baobanga Belitung, Indonesia. Director General of Mines and Coal Ridwan Jamaluddin said Xinyi had conducted a field survey and planned to hold a meeting with the Ministry of Energy and Mineral Resources (ESDM) in the near future. "The investment plan is $3 billion, but nothing has been written yet," he said Tuesday.
Xinyi is one of the world's leading manufacturers of renewable energy equipment. The company controls 40% of the global solar panel market. "For example, they can set up a solar panel factory in Malaysia for 18 months and put the product on the market," he said.
Domestic and foreign investors have been looking to silica sand, the raw material used in the production of solar panels. With the trend of energy transformation, silica sand is expected to become one of the most sought-after minerals in the world. It is also a key material for the semiconductor industry in telecommunications and automotive equipment, especially electric vehicle. Indonesia's total silica sand resources may reach 25 billion tons, while its total producible reserves may reach 331 million tons, the ESDM Department noted. Silica sand is spread across 23 provinces, from Aceh to West Papua. However, high levels of silica (SiO2) exceeding 99% are only found in the Riau Islands, Bangka Belitung, West Kalimantan, Central Kalimantan and South Kalimantan. The Institute of
Technology Bandung (LPPM ITB), in collaboration with the Department of Energy and Mineral Resources of Bangka Belitung, has analysed silica sand from the Bangka area with a high SiO2 content ranging from 69.8 to 95.6%. The iron content is 11,000-18,000 ppm oxide, 130 – 420 ppm titanium oxide, and 2,650 – 17,210 ppm aluminum oxide. However, the impurity content is still high, so further processing and refining are required to obtain the desired material.
Indonesia's huge silica sand potential has prompted the Ministry of Industry to plan a ban on silica sand exports to strengthen the domestic semiconductor and solar panel industries. The Indonesian government currently allows the export of refined silica sand with silica content above 99.5% and iron content below 120 ppm. The Indonesian Quartz Miners Association (HIPKI) said that since the government passed the Trade Minister Regulation No.19/2021 to allow the export of goods, Indonesia's silica sand has been sought after, with the largest demand coming from China. HIPKI also said that several Chinese investors are interested in setting up silica sand smelters in Indonesia, and some have even conducted investigations.
浙公网安备33010802003254号