Investors remain committed to build coal railways in Kalimantan

Two investors including PT Mineral Energy Commodities (MEC) Coal and Russian Railways remain committed to develop coal railway projects in the coal-producing region of East Kalimantan, despite the current downturn in the global coal sector.

Yadi Sabiannoor, President Director of PT Kaltim Kawasan Industri Maloy, the operator of the Maloy industrial zone in East Kalimantan, was quoted as saying Tuesday that MEC Coal, which is a joint venture between MEC Holdings and Ras Al Khaimah from the United Arab Emirate, is currently in the process of land acquisition for the planned 135 km railway.

Meanwhile, Russian Railways is currently conducting aerial photo along a 165 km line from West Kutai to Balikpapan in East Kalimantan, he said.

?MEC is expected to conduct a ground breaking in January 2014, while Russian Railways in 2015,? Yadi said, while adding that MEC has signed an Mou with the East Kalimantan provincial administration for the construction of the coal railway, which will pass through the Maloy industrial zone.

He said that MEC Holdings and Ras Al Khaiman will invest about US$5 billion in the project including an aluminum smelter, while Russian Railways will invest about $2.5 billion. (*)