RAKIA and RMMI sign MOU with Government of South Sumatra Province, Indonesia

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South Sumatra - Ras Al Khaimah Investment Authority (RAKIA)Ras Al Khaimah Investment Authority (RAKIA) and RAK Minerals and Metals Investments (RMMI) today took a giant leap in executing its coal and mining strategy and signed an important Memorandum of Understanding (MoU) with the Government of South Sumatra Province, Indonesia on "The cooperation for Tanjung Api-Api Port, Industrial City, Industrial Parks with other supporting facilities in the Banyuasin Regency, South Sumatra Province".

RAKIARAKIA entered into a MoU that covers the entire mining-to-export chain of coal industry that transcends beyond the industry vertical and looks at developing and supporting other possible industries. The MoU signed by RAKIARAKIA officials and His Excellency Syahrial Oesman, the Governor of South Sumatra, Indonesia encompasses developing a world class integrated industrial and logistics infrastructure including rail transport corridor, deep water sea port to handle bulk and container cargoes.

The MoU also includes building of an industrial park for metals refining, smelting and metal based fabrication industries, bio technology parks, Palm, rubber and other agro-base industries, captive power plants and supporting infrastructure.

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, power plant, and residence and leisure facilities.

The Government of South Sumatra will also facilitate RMMI to get licenses and off-take agreement of natural resources like coal and metallic ores to support the raw material requirement of local industries and the planned power plant.

The Province of South Sumatra, which holds the largest resources of coal in Indonesia, aims to capitalize 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, agro-businesses, bio-technology industries and, oil and gas refineries.

Commenting on the signing of the MoU, His Excellency Syahrial Oesman, Governor of South Sumatra, Indonesia, said: "We are delighted to partner with RAKIARAKIA on this prestigious project. RAKIARAKIA has capabilities to undertake the development and financing of such large integrated developmental projects. RAKIARAKIA'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."

He added: "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 agro-businesses and bio-technology industries. The idea is to plan and develop port plus supporting infrastructure in a manner that it encourages economic growth in Sumatra and adjoining province as well as in the country."

Commenting on the signing of the MoU, Madhu Koneru, Managing Director, RMMI, said: "This is one of the most exciting turnkey projects that RAKIARAKIA is undertaking and we believe that it has the potential to become a catalyst for our future organic growth in Asia. We are getting extra ordinary support and encouragement from Governmental authorities and leaders of Republic of Indonesia, including the citizens and regional administration of Banyu Asia regency and South Sumatra Province, which can help RAKIARAKIA and RMMI to implement this project within record time."

He added: "The MoU is in line with our commitment to develop minerals and metal networks in the world. We have planned to invest more than US$ 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."

RAKIARAKIA and RMMI have been formed under the patronage of His Highness Sheikh Saud Bin Saqr, Al Qasimi, Crown Prince and Deputy Ruler of Emirates of Ras Al Khaimah. RAKIARAKIA has developed state-of-the-art Industrial Free Zone and support infrastructures in Ras Al Khaimah wherein it has attracted investment in surplus of US$ 5 billion in last 2 years.

This Industrial park houses natural resource dependent medium and large industrial houses due to its proximity to the largest bulk handling port of Ras Al Khaimah. RMMI is focused towards development of natural resources and support infrastructure in Asia, Africa and CIS countries to capitalize demand of minerals and metal requirements in Middle East and Asia. It is already operating ceramic raw material business in Indonesia and currently evaluating take over options of large coal mines in Indonesia.

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