BHP has divested its stake in IndoMet Coal, exiting Indonesia completely.
The miner sold its 75 per cent interest in the operation to its equity partner PT Alam Tri Abadi (Adaro) for approximately US$120 million.
Adaro is the operator of Indonesia’s largest coal mines, running the Tutupan, Paringin, and Wara pits at its South Kalimantan concession.
IndoMet Coal consists of seven Coal Contracts of Work across Central and Eastern Kalimantan, Indonesia, and has a combined declared resource of approximately 1.27 billion tonnes of undeveloped coking coal.
The joint venture’s small scale Haju mine has a production capacity of one million tonnes of coal per annum, and has been in production since last year.
Speaking on the divestment, 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.”
However, this sale has not changed the miner’s wider view on coal, with CEO Andrew Mackenzie earlier this year flagging an additional four million tonnes of coking coal produced through its Queensland assets per annum.