BHP changes mind, to keep 75% stake in Maruwai
Saturday, January 2 2010 - 02:37 AM WIB
?Yesterday BHP reported that it would only divest a 25 percent stake in the projects. Thus, there is nothing special in this case actually,? Director general for Coal, Minerals, and Geothermal Bambang Setiawan told reporters Thursday.
Bambang said several companies were already interested in acquiring the shares and that BHP would make a decision on this no later than the end of March this year.
?We want them to make the decision faster, because they have no reason to prolong the process as with the 75 percent stake, they will remain the operator of the project," he said.
The Maruwai coal project consists of seven Coal Contracts of Works (CC0W), locally known as PKP2B, with a total working area of 330,000 he?tares. BHP initially planned to develop the Haju block wih an investment of about US$100 million and production scheduled to start in the middle of 2009.
However, in June last year BHP announced that it had stopped the development of the Haju mine, stating that this was not sufficiently in line with the company?s long term investment strategy. The company also announced that it decided to stop a feasibility study of the Lampunut block, another mine in the Maruwai project and also put its activity in the other five areas on hold subject to further study and a final decision.
?We are reviewing [with a view to] canceling all projects Indonesia,? Indra had said earlier. ?These projects do not fit with the company?s long-term strategy,? Indra Diannajaya, the Maruwai project?s external relations manager had said on June 9, 2009.
Earlier in November 2008, BHP also decided to drop its plan to develop a $4.5 billion nickel mining and refining project in the Buli area of North Maluku. Initially, BHP planned to develop the area with Indonesia?s second-largest nickel producer PT Aneka Tambang (Antam).
But, Bambang said that he was now optimistic that BHP would remain operating in Indonesia and not implement the earlier threatened disinvestment.
?They said that they were even ready to build a railway for the coal transportation in Maruwai if no other private investor was interested in doing this,? he said.
Bambang, however, quickly added that the company was still waiting for a recommendation in favor of the proposed nickel project from the governor of Central Kalimantan. The process would take some more time as the governor was still waiting for the completion of the province?s spatial planning framework. (*)