MEC Coal to finalize E. Kutai infrastructure contractor tender

Monday, March 14 2011 - 01:46 AM WIB

MEC Coal, a subsidiary of the Trimex Group is finalizing infrastructure contract tender at its coal unit PT Tekno Orbit Persada in Muara Wahau mine, East Kutai regency, East Kalimantan, the company?s senior officer told Petromindo.Com last week.

The company?s officer said the tender attracts several foreign and domestic firms, without divulging the number and identities of the bidders.

The official said that the tender winner is expected to be announced in the next few months without giving the exact time. The infrastructure projects includes building a 130-kilometers coal railway and ship loading jetty facility.

The company said that it has secured license from government to construct and operate the coal railway. The railway is designed to operate as integrated coal delivery system from mine to vessel.

The company said the railway will consists of 8 unit trains with 3 locomotives and 120 wagons.

MEC will also plan to construct a deep water ship loading facility at Muara Bengalon to facilitate coal exports on capsize vessels with more than 20 meters draft and a high load rate of 7,500 tonne per hour (tph).

The mine has1.5 billion tonnes of JORC resources with sulphur 0.15%-0.18%, ash 3-4% and calorific value of 5,200-5,300 kcal/kg (ADB).

?If everything is going smoothly, the mine is expected to start production in the end of 2012 or early 2013 with initial production of 2 million tonnes per annum,? the official said.

The mine has a designed coal production capacity for 38 million tonnes per annum and it will be expected to meet the target in 2017, the official added.

In August last year, one of the company?s executive told Petromindo.Com that the mine will initially produce 1 million tons per year in 2012 and the output will be ramped up to 14 million tons in 2013, 23 million tons in 2014 and 34 million tons in 2015, which will be the peak production of the mine.

The coal will be sold to export as well as domestic markets, as MEC will follow the government?s regulation on the domestic market obligation.

One year after the construction of the railway starts, the company, teaming up with India?s Nalco, will start the construction of 1,400-MW mine-mouth power plant and aluminum smelter with capacity of 500,000 tons per annum. The facilities will be completed in 2014, MEC?s president of infrastructure Thakur SB Singh told Petromindo.com in late May, last year.

He also said that the consortium will start construction of a 130-km coal railway and port facility in October this year with completion seen in 2012. The company expected to close financial deals and to appoint EPC contractor for the project in the third quarter of 2010. (denny)

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