The company this morning announced approval of Stage 1 of the project, which includes initial development of the Haju opencut mine, along with an associated river port.
The Maruwai coal deposit in Central and East Kalimantan was discovered by BHP Billiton Minerals Exploration in the late 1990s.
BHP said the Haju mine is a "small, discrete" coal deposit that will initially produce about 1 million tonnes per annum of metallurgical coal, with expansion potential to approximately 2Mtpa.
The company said construction will start immediately, with first production expected mid next year.
BHP Billiton coal president Dave Murray said the approval to develop the mine was an important step in the first stage of the company's Maruwai development.
“The Haju mine will be a trial to guide us in the development of the next stage in our Maruwai development," he said.
A feasibility study is currently underway for development of a 3–5Mtpa coal mine at the larger Lampunut deposit at Maruwai.
