BHP Billiton finalizes JV arrangements for its Indonesian coal project

On May 27, Australian miner BHP Billiton announced that it has confirmed the formation of the new joint venture for its Indonesian Coal Project (ICP) with a subsidiary of PT Adaro Energy TBK (Adaro) following the completion of government approvals. Adaro has acquired a 25 percent interest in the ICP joint venture, with BHP Billiton holding the remaining 75 percent.
 
Commenting on the issue, BHP Billiton's president metallurgical coal Hubie van Dalsen said "We are very pleased that the Indonesian government has approved the formation of the joint venture with Adaro, a strong Indonesian partner who shares our values and our commitment to the protection of the region's outstanding biodiversity."
 
"We are progressing study work to identify development options across the seven coal contracts of work (CCOWs). In future, the project will be known as the IndoMet Coal project," Mr. van Dalsen said.
 
As SteelOrbis previously reported, the ICP covers seven coal contracts of work (CCoWs) located in East and Central Kalimantan in Indonesia. Undeveloped metallurgical and thermal coal resources are estimated at 774 million metric tons. Adaro is Indonesia's second largest thermal coal producer and has operations near the ICP.