IndoMet coal project prepares for construction phase

By Tri Subhki R

BHP Billiton and its local partner IDX-listed coal giant PT Adaro Energy Tbk are currently making preparations to start the construction phase of the IndoMet coal project in Maruwai, Central Kalimantan, according to a senior government official.

?The Maruwai coal project is preparing for construction phase,? Edi Prasodjo, Director of Coal Business Development at the Ministry of Energy and Mineral Resources said to Petromindo.com recently.

Adaro?s Corporate Secretary Devindra Ratzarwin declined to comment.

BHP Billiton, global leader in the resource industry and the world?s largest coking coal producer, has a 75 percent stake and Adaro owns 25 percent stake in the IndoMet coking coal project. Adaro has acquired a 25 percent interest in the joint venture for US$335 million in 2010.

IndoMet coal project in Maruwai is estimated to have 774 million tons of coking coal reserves from five of seven concessions. It already acquired government license of Coal Contract of Work (CCoW) for 30 years after coal mining starts.

Editing by Reiner Simanjuntak