BHP shelves Indonesian trial mine

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

Blair Price

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.

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