Sale Indonesian Coal Mines
BHP Billiton Limited
23 October 2001
BHP Billiton Limited is issuing this announcement to fulfil disclosure
obligations arising from its secondary listing on the London Stock Exchange.
The text of this release is identical to that issued by BHP Billiton Plc
earlier.
Date: 23 October 2001
Number: 21/01
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.
* * * *
Further news and information can be found on our Internet site:
www.bhpbilliton.com
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