BHP Billiton to sell 75% interest in Indonesian coal producer to Adaro
BHP Billiton has reached an agreement to sell its 75% interest in Indonesian coal producer IndoMet Coal to its equity partner Alam Tri Abadi (Adaro).
IndoMet Coal consists of seven coal contracts of work in in Central and Eastern Kalimantan. This includes the Haju mine, which has the capacity to produce one million tonnes of coal per annum and has been in production since last year.
IndoMet Coal asset president James Palmer 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."
Completion of the sale is subject to customary regulatory approvals.
Separately, BHP Billiton and Peking University have signed a $7.37m agreement to identify the key policy, technical and economic barriers to carbon capture, use and storage (CCUS) deployment in the iron and steel industries.
BHP Billiton CEO Andrew Mackenzie said: "The application of carbon capture, use and storage may prove to be important to reducing the volume of greenhouse gas emitted by the steel sector in China and elsewhere.
"As a major metallurgical coal and iron ore supplier, BHP Billiton has a role in working with our customers, industry and research institutions in China. The work to be undertaken through this agreement is a necessary first step to get the fundamentals right and accelerate CCUS development and deployment."