Madhu Koneru invests in coal infrastructure in Indonesia


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Madhu Koneru invests in coal infrastructure in Indonesia

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Madhu Koneru invests in coal infrastructure in Indonesia

  1. 1. Madhu Koneru invests in coal infrastructure in Indonesia Group CEO: MEC Holdings (Singapore and Indonesia) Executive Director: Trimex International FZE (Dubai)
  2. 2. Madhu Koneru invests in coal infrastructure in Indonesia The Government of Ras Al Khaimah through RAK Minerals and Metals Investments (RMMI), the first Middle East mining company with a global reach, today announced its investment in coal infrastructure in Indonesia's East Kalimantan province. RMMI today also announced that it has acquired the requisite approvals to commence work on a railway network and coal jetty in East Kutai. Over the next five years, RMMI will invest in resources and in related infrastructure required such as a railway network and a coal-loading jetty. Through this investment, RMMI will be well-placed to support the growing energy requirements in the Middle East, specifically Ras Al Khaimah, United Arab Emirates. East Kalimantan, the largest province in Indonesia, is rich in mineral and natural resources including coal, gold, petroleum and natural gas. The influx of foreign and domestic investments for offshore oil and gas field exploration, mining and manufacturing operations has made it one of the wealthiest provinces in Indonesia. With new investments in transportation infrastructure, the range of economic activity in the province is expected to expand significantly and reduce the overall cost of doing business.
  3. 3. Madhu Koneru invests in coal infrastructure in Indonesia Ras Al Khaimah is one of the fast growing emirates in the United Arab Emirates. In order to sustain regional development, the Government of Ras Al Khaimah is investing in energy resources and infrastructure in Indonesia. This is to meet the prime objective of investing in alternate energy sources such as coal to produce power at affordable cost. With the coinciding infrastructure investments, RMMI will be able to maintain a high level of cost control and therefore stabilise prices in the long run. Dr. Khater Massaad, Chief Executive Officer of RAK Investment Authority, signed the agreement with Dr. H. Awang Faroek Ishak, Governor of East Kalimantan Province (Gubernur Propinsi Kalimantan Timur) for the development of the Special Railway Network and Coal Jetty, to support the operation of a Coal Property in East Kutai. The agreement was signed in the presence of His Highness Sheikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah, and His Excellency President Dr. Susilo Bambang Yudhoyono of the Republic of Indonesia during the opening of the 5th World Islamic Economic Forum (WIEF) at the Ritz Carlton Hotel, Jakarta.
  4. 4. Madhu Koneru invests in coal infrastructure in Indonesia "Today marks a milestone in our partnership with Indonesia. This agreement demonstrates our unwavering commitment to invest in harnessing the natural and human resources of East Kalimantan and to contribute to the development of the country while addressing the growing demand for energy resources and energy requirements in Ras Al Khaimah,“ said Dr. Khater Massaad. Madhu Koneru, Managing Director of RMMI, who has been responsible for driving this partnership with the Government of East Kalimantan, commented: "Investing in infrastructure is at the centre of our strategic, long-term commitment in Indonesia. We believe that a world-class transportation infrastructure creates a wealth of opportunities not just for our business but equally so for the larger community in which we operate. We will work with various mine owners for the transportation of coal and welcome partnerships.“ Mr. Koneru added, "We would like to thank Governor Awang Faroek for his support of our vision and for making this event possible, and a special word of thanks to Regent Isran Noor of East Kutai for his steadfast commitment to making this dream a reality."
  5. 5. Madhu Koneru invests in coal infrastructure in Indonesia Dr. Awang Faroek expressed confidence that the agreement will yield concrete economic benefits directly for the people of East Kalimantan and ripple across the country. "East Kalimantan is a prized jewel that contributes significantly to our national growth. With a partner like RMMI, we are assured that our resources will be developed in a responsible and mutually gainful manner for the benefit of our people. We are truly delighted that RMMI is embarking on an infrastructure project that will facilitate industrial development in East Kutai. With infrastructure to support our growth plans, our people will have access to services, products and jobs. We will see more economic activity that, in turn, will lead to greater economic benefit for the provincial and national governments.“ The Regency of East Kutai has nominated its wholly owned subsidiary, PT. Kutai Timur Investama (KTI), to partner in these initiatives. RMMI plans to develop a 30 million metric tonnes per annum (Mt/a) coal infrastructure project. Mining operation is planned to start in early 2010, and will ramp up to 15 million Mt/a to coincide with the completion of the Railway Network.
  6. 6. Madhu Koneru invests in coal infrastructure in Indonesia The agreement signed today heralds the commencement of the Railway Network, scheduled to be completed by 2012. This infrastructure development programme consists of a 125-kilometer special rail track from Muara-wahau to the eastern coast of Kalimantan. The railway will have a carrying capacity of 60 million Mt/a over the next 10-15 years. RMMI aims to increase mining capacity to 30 million Mt/a by 2020 while developing the required rail and jetty infrastructure in the region to transport and export the coal. Related to this, RMMI is collaborating with the East Kutai Government for the commencement of the initial phase of development of a jetty with mounted conveyors. Land acquisition for this terminal has already been completed.