BHP shelves Indonesian trial mine

BHP Billiton has cancelled plans to develop the Haju trial mine at its Maruwai Coal Project in Kalimantan, Indonesia.

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The company said it had determined the trial mine was not a sufficient fit with its long-term strategy.

“Further evaluation of the company’s interests in the Maruwai Coal Project is underway to determine the best future commercial options,” BHP said.

In mid-2008 the miner had announced plans to spend $US100 million in the area with the Haju mine slated to initially produce 1 million tonnes per annum of metallurgical coal.

First production was expected in mid-2009.

The Maruwai coal deposit was first discovered by BHP Billiton Minerals Exploration in the late 1990s.

BHP shares closed down 4.4% yesterday to $36.50.