BHP Billiton has entered into binding agreements to create a new joint venture for its Indonesian Coal Project (ICP) with a subsidiary of PT Adaro Energy TBK (Adaro), which has agreed to acquire a 25% interest in the ICP joint venture. BHP Billiton holds the remaining 75%.
The ICP covers seven Coal Contracts of Work (CCoWs) located in East and Central Kalimantan in Indonesia. Undeveloped met and thermal coal resources are estimated at 774 million t. Adaro is Indonesia’s second largest thermal coal producer and has operations near the ICP.
BHP Billiton president metallurgical coal, Hubie van Dalsen, said, “These agreements with Adaro provide a strong local partner to ensure the successful development of our world class met coal interests in Indonesia. As we progress development, we will continue our strong commitment to the protection of the region’s outstanding biodiversity.”
Completion of the transaction is subject to approvals from the Indonesian Government.
Read the article online at: https://www.worldcoal.com/coal/05042010/bhp_billiton_signs_joint_venture_agreement_for_indonesian_coal_project/