RMMI invests in Indonesia’s coal infrastructure

Commodity Online, 2009-03-02 11:45:00 

JAKARTA: RAK Minerals and Metals Investments (RMMI) on behalf of The Government of Ras Al Khaimah has announced its investment in coal infrastructure in Indonesia’s East Kalimantan province. 

It has acquired the requisite approvals to commence work on a railway network and coal jetty in East Kutai. Over the next five years, RMMI will invest in resources and in related infrastructure required such as a railway network and a coal-loading jetty. Through this investment, RMMI will be well-placed to support the growing energy requirements in the Middle East, specifically Ras Al Khaimah, United Arab Emirates. 

East Kalimantan, the largest province in Indonesia, is rich in mineral and natural resources including coal, gold, petroleum and natural gas. The influx of foreign and domestic investments for offshore oil and gas field exploration, mining and manufacturing operations has made it one of the wealthiest provinces in Indonesia. With new investments in transportation infrastructure, the range of economic activity in the province is expected to expand significantly and reduce the overall cost of doing business. 

Ras Al Khaimah is one of the fast growing emirates in the United Arab Emirates. In order to sustain regional development, the Government of Ras Al Khaimah is investing in energy resources and infrastructure in Indonesia. This is to meet the prime objective of investing in alternate energy sources such as coal to produce power at affordable cost. With the coinciding infrastructure investments, RMMI will be able to maintain a high level of cost control and therefore stabilise prices in the long run. 

Dr. Khater Massaad, Chief Executive Officer of RAK Investment Authority, signed the agreement with Dr. H. Awang Faroek Ishak, Governor of East Kalimantan Province (Gubernur Propinsi Kalimantan Timur) for the development of the Special Railway Network and Coal Jetty, to support the operation of a Coal Property in East Kutai. 

The agreement was signed in the presence of His Highness Sheikh Saud Bin Saqr Al Qasimi, Crown Prince and Deputy Ruler of Ras Al Khaimah, and His Excellency. 

President Dr. Susilo Bambang Yudhoyono of the Republic of Indonesia during the opening of the 5th World Islamic Economic Forum (WIEF) at the Ritz Carlton Hotel, Jakarta. 

“Today marks a milestone in our partnership with Indonesia. This agreement demonstrates our unwavering commitment to invest in harnessing the natural and human resources of East Kalimantan and to contribute to the development of the country while addressing the growing demand for energy resources and energy requirements in Ras Al Khaimah,” said Dr. Khater Massaad. 

Madhu Koneru, Managing Director of RMMI, who has been responsible for driving this partnership with the Government of East Kalimantan, commented: “Investing in infrastructure is at the centre of our strategic, long-term commitment in Indonesia. We believe that a world-class transportation infrastructure creates a wealth of opportunities not just for our business but equally so for the larger community in which we operate. We will work with various mine owners for the transportation of coal and welcome partnerships.”