Trimex's railway construction to start mid 2013

MEC Coal, a subsidiary of the Trimex Group expects to start construction of its 130km railway in East Kutai Regency of East Kalimantan in mid 2013, MEC's head of external affairs Tjetjep P said as quoted by Tribun kaltim on Friday.

"The project is currently entering the pre-construction stage, with all infrastructures to start construction already in mobilisation, including support equipment and camp," he said.

The company is still waiting to complete all the needed permits, including those from the ministry pf forestry.

Tjetjep said that land clearance needed for the railway has between 90-95% completed, with the Wahau area still in discussion with HPH company. Line passing production forest has received a go from the ministry.

Port construction has also entered the land clearing finalization stage, which construction will be initiated at the same time with first stage railway construction between Bengalon and port at Muara Wahau.

Power plant with 2X20 MW will also be constructed at both Bengalon and Muara Wahau area, in addition to 1400 MW power plant for smelter, which construction is handled by Indian based Nalco.

The company previously said that its mine in East Kalimantan will start production next year.

The mine will initially produce 1 million tons per year and the output will be gradually ramped up to a peak production of 34 million tons in 2015, it said.

The mine has 1.5 billion tons of JORC resources with sulphur 0.15%-0.18%, ash 3-4% and calorific value of 5,200-5,300 kcal/kg (ADB). (*)