12 March 2011

Australia's Mitchell Group Signs Sri Lanka’s Biggest ever FDI Project, $700mn Trinco Gateway Park Industrial Development Project

12th March 2011, www.dailynews.lk

The Mitchell Consortium, an international group led by Australian company Mitchell Group Holdings, has signed an exclusive agreement with the Sri Lankan Government to head up Sri Lanka’s largest ever foreign direct investment for an industrial development project.

The Sri Lankan Government will remain as a strategic partner.

The project master plan includes development of a bulk commodities terminal with stockpiling and blending capabilities, an export coke production plant and an iron ore palletisation plant at Trincomalee Bay.

The project will be delivered in phases, with a total value exceeding US $ 2 billion.

The first phase of the project, valued at US $ 700 million, includes a deepwater jetty and stockpiling facility. The consortium is also investigating development of other related industries in the region.

Dubbed the Trinco Gateway Park, the project will open pathways for the export and import markets of Asia, Africa and Australia and provide a strategic access gateway to satisfy the growing demands of the Indian market.

The project consortium will operate through Sri Lanka Gateway Industries Pte Ltd.

It consists of Mitchell Group Holdings, specialising in delivering international energy-related projects; Salva Corp, specialising in international bulk materials marketing and large scale international project delivery; Sri Lankan development partner Asset Holdings and is being advised by a number of international firms, including PricewaterhouseCoopers and Ausenco Sandwell.

Mitchell Group Holdings CEO Nathan Mitchell said Trincomalee Bay would serve as a strategic gateway.

“The development will be a centrally-located, deepwater gateway for international bulk commodities movements, which has the potential to accommodate 400,000t Chinamax vessels,” he said.

The group has completed detailed engineering and environmental studies, now progressing to the next technical planning phase using World Bank environmental standards as a benchmark for the project.

“Conceptual Development Plans for the project will see construction of a deepwater port with upto 80Mt capacity, together with bulk commodity stockpiling and loading facilities, a 5Mtpa coke plant and a 5Mtpa iron ore palletisation plant,” Mitchell said.

Mitchell said the Trinco Gateway Park project would serve to economically benefit local communities and the wider region. “The Trincomalee region will benefit through direct employment opportunities, community development and up-skilling during construction and long-term operation of the project,” he said.

The consortium will establish local vocational training centres in partnership with leading industry specialists.

Board of Investment Chairman Jayampathy Bandaranayake exchanging the agreement with Mitchell Group Holdings CEO Nathan Mitchell.

Related Info :

Australian Consortium to Set up Heavy Industries in the Eastern Port of Trincomalee with $700mn Investment

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