NALCO East Kutai power station

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East Kutai power station (also known as Kutai Timur power station) is a proposed 1,250-megawatt (MW) coal-fired power station in East Kalimantan Province, Indonesia.

Location

The map below shows the location of Muara Wahau District, the approximate location where the coal mine, aluminum smelter, and coal power plant would be built, in East Kutai Regency, East Kalimantan Province.

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Background on Plant

East Kutai power station (also known as Kutai Timur power station) is a 1,250-megawatt (MW) coal-fired power station proposed by National Aluminium Company in East Kutai Regency, East Kalimantan Province, Indonesia. The proposed coal plant is part of a broader complex of infrastructure, mining, and aluminum smelting investments underwritten by Ras al-Khaimah (one of the United Arab Emirates) and its partial subsidiary MEC Coal.[1][2]

In February 2009, representatives of East Kalimantan province and the East Kutai district of the province met with the Ras al-Khaimah Investment Authority and its subsidiary, RAK Minerals and Metals Investments. The UAE companies agreed to invest $1 billion to create a 139-km coal railroad. In December 2009 the emirate expanded its commitment to also include a coal terminal, an aluminum smelter, and a 1,250 MW coal plant for the smelter. The railroad would run from the site of the coal mine, smelter, and power plant inland, to the coal terminal on the coast. East Kalimantan Governor Awang Faroek has signed memoranda of understanding with both companies.

According to Gita Wirjawa, chairman of Indonesia's Investment Coordinating Board (BKPM), an additional $1 billion would be invested in the railway project by MEC Infra, a subsidiary of MEC Holdings, which in turn is co-owned by the Trimex Group and the Ras al-Khaimah Investment Authority; MEC was created for the purpose of building this project in November 2009.[3] MEC also agreed to invest $250 million in the coal terminal project, $2 billion in an aluminum smelter to be developed in cooperation with Nalco Indonesia, and $2 billion (by MEC Coal) to finance the coal plant. Nalco Indonesia is a subsidiary of National Aluminium Company, an enterprise of the government of India engaged in aluminum smelting and related operations including power generation and port operations. RAK will oversee the railroad and coal terminal, and NALCO will oversee the power plant and the aluminum smelter.[4][5]

A substantial amount of land acquisition, permitting, and preparatory work on the project has apparently been done years ago.[3] Work on the smelter/power plant segment of the project was scheduled to begin in June 2011.[6] In July 2012, the project was reportedly stalled, with MEC unable to achieve financial closing on the coal mine, and NALCO unwilling to proceed with the smelter and coal plant until the coal supply has been secured.[7]

In August 2013, MEC announced that it would begin building the project's railway as a joint project with Russian Railway Company, with land acquisition for the railway having been completed. Construction of the railway was at that point scheduled to begin in January 2014 and be completed in 2015.[8]

More recent information about the project is not available, and there have been no media updates on the website of MEC Coal since 2012.[9] It appears that the project is shelved or cancelled.

Timeline

  • 2011: Nalco signs memorandum of understanding with East Kalimantan during bilateral Indonesia-India trade ministerial forum in Jakarta.[5]

Project Details

  • Sponsor: National Aluminium Company (NALCO) and MEC Coal
  • Parent: Governments of India and Emirate of Ras al-Khaimah
  • Location: Muara Wahau District, East Kutai Regency, East Kalimantan Province, Borneo, Indonesia
  • Coordinates: 1.254, 116.682 (approximate)
  • Status: Cancelled
  • Gross Capacity: 1,250 MW (Units 1-5: 250 MW)
  • Type: Subcritical
  • Projected in service:
  • Coal Type:
  • Coal Source: Local mine sponsored by RAK
  • Source of financing: Various

Articles and resources

References

  1. Jayanta Mallick, Nalco to locate smelter project in East Kalimantan, Hindu Business Line, 30 Dec. 2009.
  2. MEC Pushes Ahead with US $1 billion Infrastruction Investment Plan, MEC press release, 27 July 2009.
  3. 3.0 3.1 [http://www.mec-holdings.com/download/mec_factsheet.pdf MEC Fact Sheet, MEC Holdings website, accessed Mar. 2015.
  4. "UAE’s Ras Al Khaimah to Invest $5.2b in East Kalimantan Project," Jakarta Globe, December 5, 2009
  5. 5.0 5.1 "Coal, aluminum firms to invest $4.76 billion in East Kutai," Jakarta Post, July 12, 2012
  6. Nalco shortlists coal supply firms for Indonesia power project, Hindustan Times Live Mint, 16 Dec. 2010.
  7. Jayanta Mallick, Nalco’s Indonesia project trips on coal supply, Hindu Business Line, 25 July 2012.
  8. Dua investor bangun angkutan khusus batu bara, Antara News, 26 Aug. 2013.
  9. MEC Coal website, accessed Mar. 2015.

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External resources