BHP BILLITON AGREES SALE OF INDONESIAN ENERGY COAL MINES
BHP Billiton today reached agreement for the sale of its 80 per cent
interest in the PT Arutmin  Indonesia (Arutmin) energy coal mining
operations in Kalimantan, Indonesia to PT Bumi Resources Tbk for $US 148
million. The remaining 20 per cent equity in PT Arutmin is held by PT Bakrie
and Brothers Tbk.
The sale agreement is subject to certain conditions and Government approvals
being met.
PT Arutmin operates two open-cut energy coal mines, Senakin and Satui, in
south Kalimantan. The mines produce approximately 11 million tonnes per
annum of thermal coal which is predominantly exported to Asian markets.
BHP Billiton Energy Coal will continue its association with PT Arutmin by
providing marketing services to the purchasers. The Marketing Services
Agreement provides for BHP Billiton to market 75 per cent of the current
coal production.
President BHP Billiton Energy Coal Mike Oppenheimer said the sale agreement
had a sound commercial basis as well as meeting the Government requirements.
"This is definitely a win for all parties and we appreciate the cooperation
of the Indonesia authorities in bringing the transaction to fruition," he
said.
Mr Oppenheimer added: "The Marketing Services Agreement provides a strong
platform for repositioning and further developing our investments in
Indonesia. In addition, the Agreement enhances the inherent value of the
business through BHP Billiton's world-wide marketing expertise and our
strong relationship with existing customers."
BHP Billiton has now met its obligation under Indonesia law to sell down its
interest in PT Arutmin to allow majority Indonesian ownership of the
project.  BHP Billiton has worked cooperatively with the Indonesian
Government in meeting the legal requirements set out in the Coal Contract of
Work (CCOW) applying to PT Arutmin and the result is believed to be the
first transaction of its kind in Indonesia.
In addition to the agreement to continue marketing PT Arutmin coal, BHP
Billiton's continuing interests in Indonesia include the management of PT
BHP Kendilo Coal Indonesia, an energy coal mine in East Kalimantan, and a
range of advanced exploration developments.
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Further news and information can be found on our Internet site:
www.bhpbilliton.com
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