BHP Billiton finds coal in Indonesia

World number one resources group BHP Billiton has discovered a new coal deposit in Indonesia's Kalimantan province, called the 'Maruwai' discovery, BHP Billiton's carbon steel materials chief development officer Peter Beaven was quoted by South African daily Business Day.

The Kalimantan province is expected to be a potential source of coking coal for BHP Billiton in the future. The group is currently continuing to drill at the Maruwai deposit.

However, the area of the discovery is a sensitive one with some environmental and social issues that will need to be dealt with in time.

"Any development will be in full compliance with Indonesian law and BHP Billiton's standards," Beaven said.

The concept study looking into the feasibility of developing the Maruwai deposit is currently in the process of being completed and is likely to be finished by the end of 2004.

There is little infrastructure around the Maruwai discovery and any coal that would be mined in the future would be transported by river on barges down to river ports, Beaven said.

Indonesia does pose significant political risks and if BHP Billiton were to proceed with mining Maruwai it would put in place measures to ameliorate the risks, he added.(*)