BHP Billiton has entered into an agreement to sell its 75 per cent interest in IndoMet Coal to its equity partner PT Alam Tri Abadi (Adaro).
James Palmer, IndoMet Coal Asset President, said: “After a detailed review of IndoMet Coal, we concluded that although the project could support a larger scale development, BHP Billiton has a range of other growth options in the portfolio that are more attractive for future investment.”
IndoMet Coal comprises seven coal contracts of Work, which are located in Central and Eastern Kalimantan, Indonesia. The Haju mine, which is located within the Lahai coal contract of work, has a production capacity of 1 million tpy of coal and has been in production since 2015.
The completion of the sale is conditional upon the fulfilment of customary regulatory approvals. During the approval period BHP Billiton and Adaro will work together to facilitate a smooth transfer of ownership.
Edited from press release by Harleigh Hobbs