UAE firms sign deal to develop S. Sumatra coal port

UAE firms Ras Al Khaimah Investment Authority (Rakia) and RAK Minerals and Metals Investments (RMMI) on Monday said they have signed a memorandum of understanding (MoU) with the government of South Sumatra Province on Tanjung Api-Api port, an industrial city, and industrial parks in the Banyuasin Regency.

The MoU covers the entire mining-to-export chain of the coal industry that extends beyond the industry and looks at developing other possible industries. The MoU signed by Rakia officials and Syahrial Oesman, the Governor of South Sumatra, encompasses developing a world-class integrated industrial and logistics infrastructure, including a rail transport corridor, deep water sea port to handle bulk and container cargoes.

The MoU also includes the building of an industrial park for metals refining, smelting and metal-based fabrication industries, bio-technology parks, palm, rubber and other agro-based industries, captive power plants and supporting infrastructure.

Under the MoU, the government of South Sumatra Province will provide sufficient land and fast-track the approval and licensing process to build new port, industrial parks and power plant, along with residences and leisure facilities.

The government of South Sumatra will also assist RMMI in getting licences and offtake agreements for natural resources like coal and metallic ores to support the raw material requirements of local industries and the planned power plant. (alex)