PERTH (miningweekly.com) – Diversified miner BHP Billiton has agreed to create a joint venture (JV) with a subsidiary PT Adaro Energy to develop its Maruwai coal project in Indonesia.

The Indonesian coal company would acquire a 25% interest in the JV, while BHP would retain a 75% interest.

BHP Billiton has been looking for a local partner to operate the coal mine.

“These agreements with Adaro provides a strong local partner to ensure the successful development of our world-class metallurgical coal interests in Indonesia,” said BHP president for metallurgical coal Hubie van Dalsen.

The Indonesian coal project (ICP) covers seven coal contracts of work located in East and Central Kalimantan. Undeveloped metallurgical and thermal coal resources are estimated at around 774-million tons.

Adaro is Indonesia’s second-largest thermal coal producer and has operations near the ICP.

BHP said in a statement that the completion of the transaction was subject to approvals from the Indonesian government.

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