MEC coal to start construction of Kalimantan railway Oct

MEC Coal, a unit of UAE?s Ras Al Khaimah Investment said it would start construction of a 130-km coal railway and port facility in Kutai regency of East Kalimantan province in October this year with completion seen in 2012.

President of Infrastructure Thakur SB Singh told reporters on sideline of Coaltrans conference in Bali on Monday that the Company expected to secure financial close and to appoint EPC contractor for the project in the third quarter of 2010.

Singh said the company has completed 95 percent of the land acquisition for the project, which will need an area of 1,300 hectares.

Singh said the railway will have capacity to transport 34 million tones of coal per annum. He said that the railway is licensed only to transport only its own coal, which is seen to start production also in 2012. MEC?s mine capacity will be quickly ramped to 34 million tones per annum in four year?s time to match the railway capacity, he said.

One year after construction of railway started, the Company, teaming up with India?s Nalco, will start construction of 1,400-MW mine-mouth power plant and aluminum smelter with capacity of 500,000 tonnes per annum. The facilities will be completed in 2014, he said.

MEC Coal will spend US$5.2 billion to build the railway, port facilities, power plant and smelter, he said.

He also said that coal produced from its mine will be sold to domestic and export market. (alex)