T

he world's largest mining company, BHP Billiton, said it may single-handedly develop the Maruwai coal project in Central Kalimantan should the company failed to find partners.

The company said earlier it planned to divest a 25 percent stake in the project.

"Finding a partner remains our first priority, but if we cannot find the right one, we are ready to develop the project alone," BHP's external relations manager for Indonesia, Indra Diananjaya, said Thursday afternoon.

He added the company expected to make a decision on this matter soon.

The Maruwai coal project consists of seven coal contracts of work, locally known as PKP2B, with a total working area of 330,000 hectares. One of the contracts covers a project at the Haju open-cut mine, on which BHP plans to invest US$100 million.

BHP initially expected the mine to begin coal production by the middle of 2009, but in June the company announced that it decided to back down from its plan to develop the Haju mine, saying the project was not in line with the company's long term business strategy.

The company also signaled that it would fully pull out from Indonesia.

However, last month BHP told legislators it would only sell between 20 to 25 percent of its stake in the project.

The Maruwai project is expected to start production in 2014 with output estimated to reach 6 million tons of coal within five years.

"This target can be met on the condition that all required permits are obtained in time," Indra said.

State coal producer PT Bukit Asam, which was one of bidders for the 25 percent stake, said it was unlikely to win the stake.

"We were told that we were not included in the shortlist for potential partners," Bukit Asam president director Sukrisno said.

Bambang Gatot Ariyono, director for coal and minerals utilization at the Energy and Mineral Resources Ministry, said BHP's decision on the Maruwai project was the company's internal business.

"The government only urges the company to make the decision immediately so that the coal reserves in Maruwai can be tapped," he said.

The mining and geothermal sector booked non-tax revenue of Rp 15.48 trillion last year, up from Rp 12.04 trillion in 2008.

Meanwhile on Monday, Bambang said the government expected to grant a mining business license (IUPs) for a $2 billion nickel project prepared by Rio Tinto Ltd. in Central Sulawesi.