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BHP Billiton exits Indonesia


BHP Billiton exits Indonesia

Report summary

On 7 June 2016 BHP Billiton announced the sale of its 75% stake in the IndoMet coal project to a subsidiary of Adaro Energy, PT PT Alam Tri Abadi at a reported price of US$120 million.

In March 2010, BHP Billiton formed a joint venture with Adaro Energy, who bought a 25% equity stake in the IndoMet concessions for US$350 million valuing the project at that time at US$1.4 billion. Falling metallurgical coal export prices, higher than expected transport costs and substantial capital expenditure estimates have combined to erode the value of the project.We value the initial stage of the project at US$32 million with the second stage currently having a negative value based on a large estimated capital expenditure of US$5 billion.


What's included?

This report includes 1 file(s)

  • BHP Billiton exits Indonesia PDF - 472.93 KB 4 Pages, 0 Tables, 2 Figures

Description

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  • Map: Indomet Coal Project concessions
  • Map: Indomet Coal Project transport options

In this report there are 2 tables or charts, including:

  • Map: Indomet Coal Project concessions
    • BHP Billiton exits Indonesia: Image 1
  • Map: Indomet Coal Project transport options
    • BHP Billiton exits Indonesia: Image 2
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