Official confirms BHP Billiton to divest stake in IndoMet Coal

Director General of Mineral and Coal Bambang Gatot Ariyono confirmed previous reports that BHP Billiton is planning to divest its stake in IndoMet Coal.

?It?s a possibility, but it has not been discussed yet who will buy the stake,? Bambang told Kontan on Tuesday following a meeting with President Director of BPH Billiton Indonesia Imelda Adhisaputra. He added that the company has yet to disclose the size of stake to be divested.

Imelda declined to provide details about the planned divestment. She said that the divestment plan is still being discussed. ?We?re still looking into it.?

Bambang said that any changes in the IndoMet shareholder structure must be reported to the Directorate General of Mineral and Coal at the Ministry of Energy and Mineral Resources.

BHP Billiton holds a 75 percent stake in IndoMet Coal, while the remainder 25 percent shares are held by IDX-listed coal giant PT Adaro Energy Tbk.

IndoMet Coal comprises of seven coal contracts of work (PKP2B) with combined concessions of 331,630 hectares and coal reserves of 1.27 billion tons in Central and East Kalimantan. Production rate currently stands at about 1 million tons of coking coal per year. Production started last year. The Murung Raya District administration had previously expressed interest to acquire a stake in IndoMet Coal. (*)