Business | General
RAK agencies sign accord for Sumatra coal mining
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.
- Staff Report
- Published: 00:35 February 19, 2008
Dubai: 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 Indonesia's 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.
Oesman said: "Rakia has capabilities to undertake the development and fin-ancing of such large integrated developmental projects. Rakia's mandate is to create robust infrastructure to support export-import and inter-island activities so that the natural resources from South Sumatra province can compete globally, efficiently and effectively."
"With the planned world class industrial city at Tanjung Api-Api, Sumatra will be able to support and attract investments in the minerals/ore dependent heavy industries, palm, rubber and other agribusinesses and bio-technology industries.
"The idea is to plan and develop a port along with supporting infrastructure in a manner that encourages economic growth in Sumatra and adjoining provinces as well as in the country."
Madhu Koneru, managing director of RMMI, said: "The MoU is in line with our commitment to develop minerals and metal networks around the world. We plan to invest more than $1 billion in 2008 towards development of strategic resources and infrastructure projects in Asia and Africa.
"The MoU with resource-rich Sumatra - where we plan to develop a suitable freight corridor and port infrastructure - will allow us to develop cost effective and efficient export route of thermal coal and other natural resources to Asian and Middle Eastern markets."
Commitment
Licensing to be hastened
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.
The province of South Sumatra, which holds the largest resources of coal in Indonesia, aims to capitalise its strategic location and get the full benefits from its natural resources and agriculture-based economy to induce social and economic growth in the region by attracting investments in the minerals/ore processing industry, agribusinesses, bio-technology industries and, oil and gas refineries.
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