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Middle East Coal to invest in Indonesia
17 December 2009: Singapore based Middle East Coal is likely to invest $1.4 billion (approx Rs 6,510 crore) in Indonesia, as part of its deal, to mine coal and ship it to Indian power producers.
Middle East Coal has assured the Indonesia Government to spend a fifth of the coal it mines in Indonesia itself, besides building infrastructure, in return for shipping coal from its mines in the Kalimantan province that are estimated to hold reserves of more than 2 billion tonne.
The company is planning to construct a railway line that can be used to transport coal from the mine to the port from where it is expected to be shipped to India. The railway line is to be financed by IL&FS on a BOT basis. Canada’s Canac is likely to be the operator in handling the commodity at both railhead and the port.
Middle East Coal is exploring the ownership swap model with power projects including those promoted by Tata Power, Reliance Energy, GMR, where Middle East would supply coal to these projects at a discounted price for long term and in return, the power companies would also take an equity stake in Middle East’s mining project.
Source: Economic Times