Ras Al Khaimah forms Industrial Minerals & Metals Investment Company

• Ras Al Khaimah launches Ras Al Khaimah Minerals & Metals Investment (RMMI)
• RAK has taken backward integration strategy to strengthen its position as industrial hub. Real Estate boom in the Middle East and India will require various building materials which will in turn create demand for industrial raw minerals and metals.
• Newly formed company will operate under the aegis of RAKIA
• 'Integrated' industrial minerals & metals strategy
• RMMI's two basic objectives: to cater to the growing demand for industrial minerals and metal resources for various industries and; to identify opportunities in emerging markets such as Africa, Eastern Europe and the Far East
• The investment potential for RMMI in these markets is estimated to be around US$ 1 billion in 2008/2009.

RAK announced the formation of Ras Al Khaimah Minerals & Metals Investments (RMMI)
RMMI is an initiative by Ras Al Khaimah Investment Authority (RAKIA), the nodal agency that oversees investment activities in the Emirate of Ras Al Khaimah, UAE.

The launch of RMMI comes close on the heels of the RAK Government's integrated industrial minerals and metals strategy which is based on the goal to become a world-leading industrial hub.

RMMI has been founded with two basic objectives: to cater to the growing demand for industrial minerals and metal resources for various industries and; to identify opportunities in emerging markets such as Africa, Eastern Europe and the Far East. The investment potential for RMMI in these markets is estimated to be around $1bn in 2008.

Commenting on the announcement His Highness Sheikh Saud bin Saqr Al Qasimi, Deputy Ruler and Crown Prince of Ras Al Khaimah, said: "I'm very pleased to announce the formation of the first-of-its kind integrated industrial minerals and metals 'investment' venture in the region. The minerals and metals industry is developing rapidly, both regionally and internationally. Our commitment to the development of these resources, while preserving the environment for future generations, has been at the heart of RAK Government's strategy."

Dr. Khater Massad, Chairman, RMMI and Advisor to H.H. Sheikh Saud bin Saqr Al Qasimi, Deputy Ruler & Crown Prince of Ras Al Khaimah, said: "We are glad to see the formation of RMMI which will be looking at various opportunities in the emerging markets. RMMI will immensely benefit from the investment banking approach that RAKIA has come to be known for. In essence, whatever RAK Government does across sectors, RMMI will be doing it in the industrial minerals and metals space."

Mr. Madhu Koneru, Managing Director, RMMI, said: "RMMI is a company with a clear vision and a bright future. We have laid the foundations for a productive and prosperous undertaking and will continuously work toward opportunities and partnerships that we firmly believe will establish the company as a world-leader in the industrial minerals and metals. In fact, RMMI has already started due diligence on few mining rights opportunities in the Far East as well as Africa. These opportunities are in mining as well as in processing of minerals"

Analysts' projections for key metals copper, nickel, zinc and industrial minerals such as coal, iron ore suggest that demand could double and even triple over the next 25 years. Firm global economic activity led by Middle East, China and India is expected to support strong increases in demand for most metals and minerals over 2008 and 2009.

Reflecting the tight market situation, copper prices are currently in the range of $6400 - $7000 per ton - about three times higher than their average level through the 1990s and well above levels achieved in the early part of this decade. In the case of coal, analysts have forecast that the prices of coking coal - used as feedstock for the steel industry - are set to jump by 49 per cent in 2008. Besides, Coal-fired power plants are being built from Shanghai to Berlin to Wichita, Kan to India, creating huge demand for thermal coal.