BHP appoints UBS underwriter for Kalimantan assets sale: Report

Australian resources giant BHP Billiton has appointed UBS as underwriter for the planned sale of its huge Maruway coking coal assets in Central and East Kalimantan, Investor Daily reported on Wednesday citing sources.

According to the report, BHP would conduct open tender for the assets. Local companies such as PT Adaro Energy, PT Bayan Energy, PT Bumi Resources, PT Indika Energy and PT Medco Energi Internasional have expressed interest to acquire the assets along with Japanese firm Itochu, the report said.

BHP, the world?s biggest mining company, scrapped plans to develop the Kalimantan mine because it did not fit its long-term strategy, the company said on June 9.

Maruwai Coal Project comprises of seven Coal Contracts of Work (CCOWs). Of these, BHP Billiton was developing the Haju mine and conducting the Lampunut feasibility study to investigate the development of an open cut coal mine.

The Haju mine was initially constructed to guide further development of the 100 per cent BHP Billiton owned large, metallurgical coal deposit in Central Kalimantan.

The company initially planned to start production from Haju at 200,000 tonnes starting November this year, ramping up to 1-2MTPA in the following years.(*)