Dubai Project to Source Coal from Indonesian mine

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Researched by Industrial Info Resources (Sugar Land, Texas)--In a move demonstrating the strong interconnections between the industrial markets of the Middle East, the Indian subcontinent and Asia, Dubai's ETA Star Group is to source from an Indonesian coal mine to feed a new Indian power coastal power station.

ETA has acquired a $300 million Indonesian coal mine with reserves of 100 million tons from which the output will feed a 1,200-megawatt (MW) power plant that the company is planning to construct in Tamil Nadir. In the first phase of the project, starting in 2010, up to 3 million tons per annum of coal will be exported to the project. ETA is currently constructing road infrastructure for transport of the coal from the mine.

The $1.5 billion power plant will mark the company's entry into the thermal power generation sector and will be developed as a merchant power project. A package of land and for the site is being assembled, and a coal terminal for the importation of the Indonesian coal is planned. The $750 million-$875 million dry bulk port will handle cement, coal and iron ore and will have the capacity to handle panamax carriers. A liquid terminal installation will be included in the terminal plans.

The Indonesian mine will be owned by subsidiary ETA Star Resource India and ETA Star Energy, another subsidiary, will own the power project, The Economic Times reported.

The company is pursuing several power projects in India, including plans to build a $125 million, 100-MW windfarm south of Tamil Nadu. ETA will invest $125 million in a 100-MW hydropower project in Meghalaya. A 10-MW biomass plant will be built in Tamil Nadu to follow a similar plant the company runs in Punjab.

ETA has built a network in 21 countries based on its core activities in real estate, concrete and building constriction and services and had total revenues of $5 billion in 2007. ETA Star Property plans to build a $1 billion satellite township near Chennai and will invest $500 million in real estate projects in Bangalore.

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