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The company owns a 75% stake in the IndoMet Coal project which is considered a high quality metallurgical coal operation. It sold the remaining 25% to Indonesia's Adaro Energy in 2010 for $US335 million but analysts estimate coal prices would have reduced the value of IndoMet since then.
“BHP Billiton is conducting a strategic review of the long-term future options for its Indonesian coal interests, IndoMet Coal, which comprises seven coal contracts of work within the provinces of Central and East Kalimantan,” the company said in its quarterly review.
Despite its high quality, IndoMet is considered non-core for BHP Billiton which is scrambling to shore up its balance sheet.
“Does it move the dial for BHP? No. But it's a really high quality met-coal property and potentially a fantastic opportunity for an Indonesian company with the right connections,” Shaw & Partners analyst Peter O'Connor told Reuters.
