The Jakarta Post
The world’s biggest mining company, BHP Billiton, is selling the whole of its 75 percent stake in a joint venture, IndoMet Coal, to its partner, local coal miner Adaro Energy, for the bargain price of US$120 million amid plunging global coal prices.
That compares with the $335 million Adaro paid for a 25 percent stake in IndoMet Coal back in 2010, signifying a drastic price cut amidst persistently low coal prices caused by decreasing global coal demand, especially from major importer China, which has been hit by much slower economic growth.
“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 its portfolio that are more attractive for future investment,” IndoMet Coal asset president James Palmer said in a statement.
The asset sale took plac...