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Sun 21 Dec 2008 10:59 PM

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RMMI in $4bn venture with NALCO

UAE mining firm and Indian aluminium maker to develop projects, including smelter, in Indonesia.

RAK Minerals and Metals Investment (RMMI) has signed a preliminary deal with India's National Aluminium Co. (NALCO) to build $4 billion worth of projects in Indonesia, the UAE mining firm confirmed on Sunday.

As part of the memorandum of understanding, RMMI and NALCO will build an aluminium smelter, with a 1,250 megawatts energy plant in South Sumatra province to power the facility.

The smelter will have a capacity to produce around 500,000 tonnes of aluminium per annum, while RMMI will provide five million metric tonnes per annum of low sulphur thermal coal to power the facility.

RMMI said it intended to buy a 24 percent stake in the project.

"Through this joint venture, RMMI will be able to expand its mining capacity in Indonesia, and increase the much needed supply chain infrastructure surrounding our current operations in South Sumatera," said Madhu Koneru, managing director of RMMI.

"This smelter will also complement the smelting and metal based fabrication industries that have been proposed under our MoU with the government of South Sumatera."

RMMI, a joint venture between the Ras Al-Khaimah Investment Authority (RAKIA) and Trimex International, is the Middle East’s first mining company with a global reach, and has existing investments and operations in coal mines in Indonesia.

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