BHP may scrap plan to exit Kalimantan giant coal project

Australian resources giant BHP Billiton may cancel plan to entirely sell its Maruway coking coal project in Central and East Kalimantan provinces and may retain majority interest in the project, a senior government official said on Tuesday.

Bambang Setiawan, Director General of Mineral, Coal and Geothermal at the Ministry of Energy and Mineral Resources told reporters that BHP is mulling joint venture scheme to develop the giant project. ?BHP will retain 50.5 percent stake in the project,? he said without giving further detail.

The Maruway project comprises of seven Coal Contract of Works. BHP initially planned to develop the project to produce 5MTPA of coking coal in 2012. The company later scrapped the plan, saying that the project ?no longer strategic to BHP?s future?. (godang)