BHP Billiton quits coal stake in IndoMet

BHP has quit its controversial 75pc stake IndoMet, following an internal review.

BHP Billiton has quit its environmentally controversial 75 per cent stake in Indonesian coal producer IndoMet in a $US120 million ($160m) deal with its partner in the joint venture, Indonesia’s Adaro.

The exit means BHP leaves behind its Indonesian coal ambitions on a near break-even basis after taking in to account capital sunk in to the Central and Eastern Kalimantan coal areas under IndoMet control.

BHP said the exit followed a review of the IndoMet asset, which is small compared to its Australian coalmining interests.

“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,” BHP said.