BHP Billiton has denied media reports that it will withdraw from Indonesia and there are indications that it will retain a 75% interest in the Maruwai Coal Project in Central Kalimantan.
The Maruwai project involves 7 mining concessions covering an area of 330,000 hectares.
Initial production was proposed for mid-2009 at the Haju block in which BHP had invested US$100 million in development.
However, in June 2009 BHP Billiton announced that it had stopped all mining activities on the Haju site, stating the project conflicted with their long-term strategic investment plan. It also ceased the feasibility study of the Lampunut block and five other areas.
Indonesia’s director general of coal, mineral and geothermal Bambag Setiawan has stated that BHP will only sell 25% of the Maruwai project with a number of companies showing their interest in this stake.
Bambag Setiawan is optimistic that the mining giant will continue to operate in Indonesia.
BHP Billiton is still waiting for recommendations for its nickel development project from the Governor of Central Kalimantan.