BHP Billiton sells Arutmin
Tuesday, October 23 2001 - 10:00 AM WIB
Bumi Resources is a Jakarta listed firm whose majority stake is indirectly controlled by Bakrie family.
The remaining 20 per cent equity in PT Arutmin is held by PT Bakrie and Brothers Tbk.
The sale agreement is subject to certain conditions and government approvals being met.
PT Arutmin operates two open-cut energy coal mines, Senakin and Satui, in south Kalimantan. The mines produce approximately 11 million tons of coal per annum of thermal coal which is predominantly exported to Asian markets.
?BHP Billiton Energy Coal will continue its association with PT Arutmin by providing marketing services to the purchasers. The Marketing Services Agreement provides for BHP Billiton to market 75 per cent of the current coal production,? said the company in a statement.
President BHP Billiton Energy Coal Mike Oppenheimer said the sale agreement had a sound commercial basis as well as meeting the Government requirements. ?This is definitely a win for all parties and we appreciate the cooperation of the Indonesia authorities in bringing the transaction to fruition,? he said.
?The Marketing Services Agreement provides a strong platform for repositioning and further developing our investments in Indonesia. In addition, the agreement enhances the inherent value of the business through BHP Billiton?s world-wide marketing expertise and our strong relationship with existing customers.? Oppenheimer added.
BHP Billiton has now met its obligation under Indonesia law to sell down its interest in PT Arutmin to allow majority Indonesian ownership of the project. BHP Billiton has worked cooperatively with the Indonesian Government in meeting the legal requirements set out in the Coal Contract of Work (CCOW) applying to PT Arutmin and the result is believed to be the first transaction of its kind in Indonesia.
In addition to the agreement to continue marketing PT Arutmin?s coal, BHP Billiton?s continuing interests in Indonesia include the management of PT BHP Kendilo Coal Indonesia, an energy coal mine in East Kalimantan, and a range of advanced exploration developments. (alex)