MEC Holdings launches six major projects in Indonesia worth USD 5 bln

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Madhu koneru Executive Vice Chairman, MEC
Holdings, Ltd.

• MEC Holdings launches six major projects in
  Indonesia worth USD 5 bln

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MEC Holdings launches six major projects in
Indonesia worth USD 5 bln
MEC Holdings, part of the Dubai-based Trimex
Group, said on Sunday that it has begun work on
six major projects in Indonesia involving a total
investment of 5 billion in partnership with the
Government of Ras Al Khaimah. The projects - a
coal mine, railway, an aluminum smelter, a
fertilizer plant, a port terminal and a power
plant - are making significant headway, and the
flagship 1 billion rail project is on track for
commissioning in 2012, said Madhu Koneru, MECs
Executive Vice-Chairman. MEC Coal and MEC Infra
- two special purpose vehicles set up as a joint
venture between the Ras Al Khaimah Investment
Authority (Rakia) and MEC Holdings -are
spearheading the projects in partnership with
Indias National Aluminum Co (Nalco) and
Infrastructure Leasing Financial Service Group
(ILFS), he said.
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MEC Holdings launches six major projects in
Indonesia worth USD 5 bln
MEC Coal is developing the coalmine, which has an
estimated two billion metric tonnes in coal
reserves, while MEC Infra undertakes the
130-kilometer rail project. Work on the rail
track, the first private railway in Indonesia,
will begin next month. "We have completed the
land acquisition for the project and expect to
sign the engineering procurement and
commissioning (EPC) contract for the rail
corridor by May this year," said Mr. Koneru. The
rail will link the Muara Wahau coal mine in East
Kalimantans East Kutai district with the coast,
where MEC Holdings is investing 250 million on a
new port capable of handling cape-size vessels.
Land acquisition of 250 hectares for the
terminal has already been completed. The port
will be the regions first fully integrated
facility to load vessels using an automated
conveying system, said Koneru.
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MEC Holdings launches six major projects in
Indonesia worth USD 5 bln
Koneru said the mine and railway would be central
to a complex of facilities that includes a power
plant fuelled by coal, an aluminium smelter, a
fertilizer plant and a high capacity port
terminal with a total integrated investment
valued at 5 billion. MEC is partnering with
global railway and transportation services
leader, CANAC for railway and port operations and
maintenance. With equity partner Nalco, an
Indian government entity and Asias largest
integrated aluminium complex, MEC will invest 2
billion in the greenfield aluminium smelter with
capacity of 500,000 tonnes per annum. The smelter
will depend on bauxite import from India. A
further 2 billion investment will build a 1,250
MW coal-fired power plant and other auxiliary
facilities for the smelter. Both projects are
scheduled for completion in 2013.
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MEC Holdings launches six major projects in
Indonesia worth USD 5 bln
ITNL, a subsidiary of IL FS Group, is providing
MEC financing to build the transportation
infrastructure, railway network and deep-sea
port, said Koneru. The land acquisition for all
the projects is almost complete and the project
is on schedule. In the next five years, MECs
investments alone will create 5,000 new jobs in
East Kalimantan, said Koneru. Initially, MEC is
looking at a coal production of two million
tonnes starting this year from its 12,000-hectare
coal concession in East Kutai. Production from
this site is expected to reach 32 million metric
tonnes annually by 2019. MEC Holdings parent
company Trimex Group is a global minerals and
metals conglomerate. http//steelmillsoftheworld.
com/news/newsdisplay_cntry.asp?slno18695