MEC to invest $1b for E. Kalimantan coal transportation

Middle East Coal (MEC), which currently operates a large coal mine in East Kutai, East Kalimantan, plans to inject additional investment of about US$5 billion in Indonesia?s mine and energy sectors.

MEC?s Executive Vice President Madhu Koneru said in a press statement Monday that the company would invest $1 billion of the company?s total investment commitment to build a 130-kilometer rail road for coal transportation in East Kutai, he said.

At present MEC operates a 12,000-hectare coal mine with total coal reserves of about 2 billion tons in East Kutai. The company expects to begin coal production end of this year with a first stage output of about 2 million tons. The production will be gradually increased to 32 million tons a year by the end of 2019.

As part of its expansion plan, MEC will also spend up to $4 billion to build an aluminium processing plant and a coal-fired power plant with a capacity of 1,250 megawatt in the province.

MEC will cooperate with National Aluminum Company (NALCO) of India in the two projects which are scheduled for completion by the end of 2013.

MEC, a joint venture between Trimex Group and Ras Al Khaimah of United Arab Emirates, is headquartered in Singapore. (*)