October 14, 2008

BHPB may invest in Indonesian coking coalmines – Report

Bloomberg reported that BHP Billiton Ltd might spend USD 300 million for developing coking coalmines in Indonesia because of increased demand from steelmakers in Asia.

Mr Simon Sembiring director general of coal and mineral resources at the Indonesian energy ministry said that BHP’s local subsidiaries PT Lahai Coal and PT Maruwai Coal expect to produce 5 million tonnes of coking coal between them annually by 2009 form projects on Borneo Island.

Mr Sembiring said the Haju block is expected to produce 1 million tonnes of coking coal in January to June of 2008 and may cost USD 66 million to develop adding that the Lampunut block will start production in 2009. He added that two areas in Central Kalimantan province have a reserve of as much as 100 million tonnes.

Mr Indra Diannanjaya, the president director of both Lahai and Maruwai, declined to confirm the spending figure by saying that feasibility studies on the projects had been completed.