BHP Billitons says no decision yet on Indonesia nickel project

Despite government?s decision to reinstate mining right at its Gag Island nickel project in Eastern part of Indonesia, Australian resources giant said Friday it was still undecided about the future of the project.

BHP Billiton Chairman Don Argus said in annual general meeting speech that the company is still considering option and had not made a decision regarding the future of the project.

Argus went on to say that thus BHP Billiton did not allocate any budget this year to conduct any mining activity on the project.

BHP Billiton put Gag Island nickel project on ?care and maintenance? status in 1999 following enactment of a forestry law that prohibited open pit mining activities in protected forests.

Earlier this year, the government issued a presidential decree that reinstated the right to mine for 13 mining companies across Indonesia. BHP Billiton was one of those companies, all of which had pre-existing rights to mine.

? The project is not on our Project Pipeline; Before any mining could take place, and this is important, we would need to conduct a feasibility study and associated environmental and social impact assessment,? said Argus.

?I want to make very clear that we will not mine in World Heritage areas and nor will we utilize deep sea tailing placement to dispose of tailings,? he added.

Some NGOs, which vehemently oppose Gag island project development said that the project?s location is within Raja Ampat Marine Park, which is declared by UNESCO as World Heritage, but BHP official said that the project is located well outside the park?s boundary.

BHP Billiton had 75 percent stake in Gag nickel project, while state miner Aneka Tambang holds the remaining of 25 percent.(alex)