On March 31, Australian mining giant
BHP Billiton announced that it 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 percent interest in the ICP joint venture.
BHP Billiton holds the remaining 75 percent.
According to the company's statement, 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.
Commenting on the issue,
BHP Billiton's president for metallurgical coal Hubie van Dalsen said, "These agreements with Adaro provide a strong local partner to ensure the successful development of our world class metallurgical 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.