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BHP may still be around as it seeks a joint venture
BHP Billiton, the world's largest mining company, may not pull out from its Maruwai coal project in Central Kalimantan after all as the company is looking for partners to form a joint venture to run the project, a senior government official says
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HP Billiton, the world's largest mining company, may not pull out from its Maruwai coal project in Central Kalimantan after all as the company is looking for partners to form a joint venture to run the project, a senior government official says.
In early June, the company announced that it had decided to stop the development of the Haju trial mine, one of the seven mines under the Maruwai project, saying the mine was not in line with BHP's long-term investment strategy.
However, Bambang Setiawan, a director general for coal, minerals and geothermal at the Energy and Mineral Resources Ministry said Tuesday the company might actually keep a stake in the project.
"BHP seems to want to stay in the project and is looking at establishing a joint venture in which it seeks to hold a majority interest," he said.
Bambang added that the joint venture might be less risky in term of financing in developing the massive project.
"With a joint venture, the investment would not be as big as if the company developed the project alone," he said.
The establishment of a joint venture could be done under a business-to-business framework without government intervention, Bambang added.
BHP's vice president for media relations, Samantha Evans, said the company was still reviewing the commercial options of the project.
"We are continuing to review our commercial options in relation to the Maruwai Coal Project, including a potential full or partial sale of our interests."
"We have sought further information on these sale options through an Expression of Interest process involving a number of parties. That process is continuing," she said in an emailed statement.
Bambang said ten local companies, including PT Adaro Energy, PT Medco Energi, PT Indika Energy and state mining company PT Aneka Tambang (Antam) had expressed interest in acquiring or taking part in the project.
The Maruwai coal project consists of seven Coal Contracts of Works (CCoW), locally known as PKP2B, with a total working area of 330,000 hectares.
The initial development of the project was the Haju open cut mine in which BHP planned to spend about US$100 million in investment.
