JAKARTA, Jan 27 (Reuters) - Leading global miner BHP Billiton wants to sell a 20-25 percent stake in its Maruwai coal project in Kalimantan on Borneo island, the head of one of the firm's local units said on Wednesday.
'We want to keep a majority stake in the Maruwai coal project. So we are looking at selling a 20-25 percent stake,' said Indra Diannanjaya, president director of PT Juloi Coal, one of seven coal miners in the BHP Maruwai project.
'But if a business deal fails to take place, BHP would retain 100 percent,' he said, adding it would continue to develop the project.
Sources told Reuters last year that Indonesian coal miners PT Bumi Resources, PT Adaro Energy and PT Indika Energy were among the bidders for the Maruwai coal project.
One said the world's largest miner had been simultaneously receiving bids for 100 percent of the project -- valued at roughly $500 million -- and also for 25 percent minority stakes.
The Maruwai coal project is expected to start commercial production in 2014 and output is then seen reaching 6 million tonnes within 5 years, Diannanjaya said.
The project will need between $500 million to $1 billion to produce 6 million tonnes, he said.
BHP Billiton said in June last year it would not go ahead with the first stage of the project because it did not fit with the company's long-term investment strategy, but government officials said later in the year that it was opting to sell a stake.
BHP hired UBS to run the sale, sources have said.
(Reporting by Fitri Wulandari; writing by Neil Chatterjee; Editing by Sara Webb)
((fitri.wulandari@thomsonreuters.com; Reuters Messaging: fitri.wulandari.reuters.com@reuters.net; +62 21 384 6364 ext 904)) Keywords: BHP INDONESIA/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
'We want to keep a majority stake in the Maruwai coal project. So we are looking at selling a 20-25 percent stake,' said Indra Diannanjaya, president director of PT Juloi Coal, one of seven coal miners in the BHP Maruwai project.
'But if a business deal fails to take place, BHP would retain 100 percent,' he said, adding it would continue to develop the project.
Sources told Reuters last year that Indonesian coal miners PT Bumi Resources, PT Adaro Energy and PT Indika Energy were among the bidders for the Maruwai coal project.
One said the world's largest miner had been simultaneously receiving bids for 100 percent of the project -- valued at roughly $500 million -- and also for 25 percent minority stakes.
The Maruwai coal project is expected to start commercial production in 2014 and output is then seen reaching 6 million tonnes within 5 years, Diannanjaya said.
The project will need between $500 million to $1 billion to produce 6 million tonnes, he said.
BHP Billiton said in June last year it would not go ahead with the first stage of the project because it did not fit with the company's long-term investment strategy, but government officials said later in the year that it was opting to sell a stake.
BHP hired UBS to run the sale, sources have said.
(Reporting by Fitri Wulandari; writing by Neil Chatterjee; Editing by Sara Webb)
((fitri.wulandari@thomsonreuters.com; Reuters Messaging: fitri.wulandari.reuters.com@reuters.net; +62 21 384 6364 ext 904)) Keywords: BHP INDONESIA/ (If you have a query or comment on this story, send an email to news.feedback.asia@thomsonreuters.com) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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