BHP Billiton has agreed to sell its 75% interest in IndoMet Coal to its equity partner PT Alam Tri Abadi (Adaro).
IndoMet Coal comprises seven Coal Contracts of Work that are located in Central and Eastern Kalimantan, Indonesia.
The Haju mine, which is located within the Lahai Coal Contract of Work, has been in production since 2015 and has production capacity of one million tonnes of coal per annum.
“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,” said James Palmer, IndoMet Coal Asset President.
According to BHP Billiton, the sale is conditional upon the fulfilment of customary regulatory approvals.
“During the approval period BHP Billiton and Adaro will work together to facilitate a smooth transfer of ownership,” the giant miner said in a media release.