Minister confirms BHP Billiton planning to divest mine asset
Saturday, April 23 2016 - 05:28 AM WIB
Minister of Energy and Mineral Resources Sudirman Said confirmed Friday that Australia?s BHP Billiton is planning to sell a mine asset located in Kalimantan.
Sudirman, however, said he has no information which of the company?s assets would be divested. ?I have received report that BHP will divest one of its mines, not pulling out. (But) I don?t know who will buy it,? he told reporters.
He was responding to reports quoting sources that BHP Billiton was planning to divest its stake in the IndoMet Coal project, also known as the Meruway metallurgical coal project.
BHP Billiton refused to confirm information that the planned divestment. ?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.
The InoMet Coal 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.
Editing by Reiner Simanjuntak