BHP agrees to sell IndoMet Coal stake

BHP agrees to sell IndoMet Coal stake

BHP Billiton (ASX:BHP) has entered an agreement with an Adaro Energy subsidiary to sell its 75 per cent interest in IndoMet Coal and its coal assets in Indonesia.

The company announced that PT Alam Tri Abadi, an arm of Adaro, will take full control of IndoMet Coal moving from 25 per cent to full ownership. Unnamed sources told the media the deal was worth US$120 million.

IndoMet Coal comprises seven coal contracts in central and eastern Kalimantan, Indonesia, including the Haju mine which has a production capacity of 1 million metric tonnes per year alone.

James Palmer, IndoMet Coal asset president 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.”