BHP may sell IndoMet Coal project
Monday, April 18 2016 - 03:48 AM WIB
Indonesian unit of Australian resources giant BHP Billiton refused to confirm information that the company is in the process of selling its metalurgical coal asset in Indonesia.
?At this moment, we can not answer question that is speculative in nature,? BHP Billiton Indonesia President Director Imelda Adhisaputra said in a text message on Monday, replying to Petromindo.com?s query whether or not BHP Billiton is selling its Indonesian asset.
Several local media, quoting sources, have reported the company?s intention to sell IndoMet Coal project, also known as Meruway coal project to undisclosed party.
The project, which is located in Central and East Kalimantan is currently producing 1 million tons per annum of coking coal. Production at the mine started in 2015. BHP has 75 percent stake at the project with partner IDX-listed coal miner PT Adaro Energy Tbk holding the balance.
IndoMet Coal comprises of 7 coal contract of work with combined concessions of 331,630 hectares and coal reserves of 1.27 billion tons.
A source told Petromindo.Com last week that there has been due diligence conducted by a Japanese company on the mine.
Editing by Alexander Ginting