BHP Billiton has entered into an agreement to sell its 75% interest in IndoMet Coal to its equity partner PT Alam Tri Abadi (Adaro) for an undisclosed amount.
In April 2016, the group started a strategic review of the long-term future options for its Indonesian coal interests, IndoMet Coal, which comprises seven coal contracts of work within the provinces of Central and East Kalimantan, with estimated resources of 1.27 Gt. The company recently started exported its first shipment from the Haju mine in Indonesia, located within the Lahai Coal Contract of Work, which as been in production since 2015 with a production capacity of 1 Mt/year of coal.
However, weak outlook for coal and uncertainties over Indonesian regulations have slowed down new development projects. BHP Billiton will focus on other growth options in the portfolio that are more attractive for future investment. Completion of the sale is conditional upon the fulfilment of customary regulatory approvals.