Madhu Koneru MEC Press Release - $5.6B Smelting Project

1
MEC to develop 5.6b smelting project
MEC press release

• Madhu Koneru Executive Vice Chairman

2
MEC to develop 5.6b smelting project
East Kutai regent Isran Noor said Wednesday that
a Dubai-based company and an Indian aluminum
producer had started the development of an
aluminum smelter in Muara Wahau, East Kutai, East
Kalimantan. In addition to the smelter, the two
companies Mineral, Energy, Commodities (MEC)
Coal and National Aluminum Co. (Nalco) would
also set up a power plant with a total capacity
of 1,400 megawatts and 142 kilometers of railway
track connecting Muara Wahau and a port in Lubuk
Tutung, Isran reported. The total investment
for the project reaches US5.6 billion. They have
started the development and we hope that by the
end of 2012, the smelter can begin operating with
a total capacity of 500,000 metric tons per
year, he told reporters after a discussion on
coal mining in Jakarta. The smelter would be
built near the coal mining site of PT Tekno Orbit
Persada, a subsidiary of MEC Coal, in Muara
Wahau, Isran said. The smelter was designed to
process bauxite into aluminum, he added.
3
MEC to develop 5.6b smelting project
He revealed that of 1,400 megawatts capacity of
the planned power plant, 200 megawatts would be
utilized for people living around the power
plant. MEC said in a press statement available
on its website that the projects would create
around 5,000 jobs. The company also plans to
build a fertilizer plant in East Kalimantan. MEC
Coal is a subsidiary of Dubai-based MEC holdings
and the Ras Al-Khaimah Investment Authority,
while MEC holdings is a subsidiary of Dubai-based
Trimex Group, which invests in the energy and
mineral sectors. According to MEC Coals
website, Tekno Orbit Persadas coal concession is
located approximately 125 kilometers northwest of
the coastal town of Sangatta and covers 5,000
hectares of mining land. The mining concession
contains Joint Ore Reserves Committee (JORC)
compliant resources of 1.5 billion tons of
environmentally friendly coal.
4
MEC to develop 5.6b smelting project
Last month, Russia also expressed its interest to
set up nickel and copper smelters in East
Kalimantan. The country said it had prepared
around 6 billion to fund the planned
investments. The raw materials will be taken from
Sumbawa in West Nusa Tenggara province, Papua
province and Halmahera in North Maluku
province. PT Aneka Tambang (Antam), the
countrys second largest nickel producer, also
plans to build an aluminum smelter in Tayan, West
Kalimantan. The plant will have an installed
capacity to smelter 300,000 tons per year. On
February, PT Newmont Nusa Tenggara, the operator
of the Batu Hijau gold and copper mine, announced
it would not build a smelter in its operation
area. The companys feasibility study showed that
the project was not economical due to the
difficulty of securing a raw material
supply. The 2009 Law on Mineral and Coal
stipulates that starting 2014, all miners are no
longer allowed to export raw mine
products. Indonesia has the only aluminum
smelter in Southeast Asia located in Asahan,
North Sumatra. The smelter, which was built in
1976, is currently operated by PT Indonesia
Asahan Aluminium (Inalum). Inalum allocates only
40 percent of production to the domestic market,
while exporting the rest to Japan.
5
MEC to develop 5.6b smelting project
6
MEC to develop 5.6b smelting project
Our Web Link http//www.mec-holdings.com/press/2
01107_mec.html Web Source http//www.thejakart
apost.com/news/2011/07/28/dubai-firm-develop-56b-s
melting-project.html http//www.thejakartaglobe.c
om/archive/kalimantans-56b-smelter-to-operate-in-2
012-official/455640/ http//www.arabianbusiness.c
om/indonesia-eyes-2012-start-for-5-6bn-uae-india-p
roject-412788.html