Wed, 10 Jun 2009
From: The Jakarta Globe
By Reva Sasistiya
Anglo-Australian miner BHP Billiton will pull out of most of its remaining investments in Indonesia, ending its 25-year local presence in mining, transport and in other fields, the company announced on Tuesday.

Company officials said Indonesian projects were no longer strategic to BHP’s future.

“Our strategy going forward is to concentrate on our Bowen Basin assets in Queensland,” said Samantha Evans, BHP Billiton’s media relations manager said from Melbourne, Australia, adding that the company would continue to maintain a Jakarta office.

“All Indonesia projects are in the process of being halted,” said Indra Diannanjaya, president director of PT Lahai Coal, one of BHP Billiton’s fully owned subsidiaries in the country.

“It was the results of a review from our headquarters that, although output is expected to be high-grade coal, it doesn’t suit the company’s long-term plan.”

About 450 jobs will be lost across the country, mostly from the Lahai operations in the Haju field in Murung Raya district, Central Kalimantan, stage one of the large Maruwai project, which had seven planned mines spanning Eastern and Central Kalimantan.

BHP Billiton and other big mining companies have faced considerable pressure over the last several months, as commodity prices plunged in line with slowing Chinese demand. BHP earlier announced plans to slash 6,000 jobs worldwide, about 6 percent of its global workforce, because of the financial crisis.

Profit for the six months to Dec. 31 fell 56 percent to $2.62 billion from $6 billion the year before, with BHP booking substantial losses on its Ravensthorpe nickel mine.

Mahendra Siregar, the Coordinating Ministry for the Economy’s deputy for international cooperation, said that global trends were running against the big miners, making it difficult for investors.

“If we look at the condition of global mining companies, all of them are having a hard time due to low commodity prices,” Mahendra said. “I think it’s part of their consolidation plan. If they could hold on for two or three years, things will improve.”

BHP was expected to invest $100 million in the Haju field, estimated to contain 5.4 million tons of coal reserves. It was set to start producing an initial 200,000 tons of coal in November, reaching an eventual peak of 2 million tons a year. Other projects in the Maruwai area were expected to produce 25,000 tons of coking coal, used to make steel, starting in 2013.

Bambang Gatot Ariyono, the director of coal and minerals at the Ministry of Energy and Mineral Resources, said the government had been told about BHP’s decision.

“We will review it before we reach any decision on whether we will transfer the contract to another party,” he said, without revealing further details.


Wed, 10 Jun 2009
From: JakChat
Comment by chewwyUK
wow -- that's big news and speaks volumes


Wed, 10 Jun 2009
From: JakChat
Comment by KuKuKaChu
yes, not many people here will get it, but it is a massive vote of no confidence in the system here, coming from the largest mining company in the world.


Wed, 10 Jun 2009
From: JakChat
Comment by Derek Gratis
What's all this Piss Salon "taste" editing about? Since when have matters of taste ever ruffled that bugger's feathers?


Wed, 10 Jun 2009
From: JakChat
Comment by chewwyUK
since he became a father


Wed, 10 Jun 2009
From: JakChat
Comment by chewwyUK
There are also Rumours that Rio Tinto will start slowing down operations in Indonesia


Wed, 10 Jun 2009
From: JakChat
Comment by kenyeung
Quoting: biznews
Anglo-Australian miner BHP Billiton will pull out of most of its remaining investments in Indonesia, ending its 25-year local presence in mining, transport and in other fields, the company announced on Tuesday.

All Indonesia projects are in the process of being halted,” said Indra Diannanjaya, president director of PT Lahai Coal, one of BHP Billiton’s fully owned subsidiaries in the country.


So what is it? Most or everything? What about BHP's long-proposed nickel mine on Gag Island off Papua? It's not as if Prabowo is going to become president and tear up the contracts.


Wed, 10 Jun 2009
From: JakChat
Comment by Derek Gratis
There are rumours that Chewwy PLC has made a hostile bid for PT. Sosro.


Wed, 10 Jun 2009
From: JakChat
Comment by kenyeung
Quoting: kenyeung
What about BHP's long-proposed nickel mine on Gag Island off Papua?


Answering my own question, BHP abandoned the Gag nickel project last year.

BHP Billiton Ends Study Into Integrated Nickel Development In Eastern Indonesia
BHP Press Release
13 November 2008

BHP Billiton has decided to end a study into integrated nickel development in eastern Indonesia. The study has not been able to identify a business case which would support an investment in this opportunity.

Initially a resource at Gag Island in eastern Indonesia was being evaluated and then a second resource at Buli in Halmahera was included following a conditional agreement to form a joint venture alliance with PT Antam Tbk, a publicly listed Indonesian mining company.

The agreement with PT Antam Tbk was conditional on obtaining a Contract of Work (CoW) for the Buli resource by 31 October 2008 which has not been achieved. BHP Billiton has therefore decided to terminate the agreement with PT Antam Tbk. As a consequence of terminating the integrated study, BHP Billiton will not pursue a stand alone development at Gag Island.

BHP Billiton will continue to work closely with the Indonesian Government and regional and local government authorities in other projects in Indonesia.


Wed, 10 Jun 2009
From: JakChat
Comment by Balibob
I think someone got the biz news very wrong in terms of coal out put and reserves,.. shit our friends at bakrie mined 47 million ton of coal lasy year alone in Indonesia so to have a reseve of 5.4 mill as per the biz news,.. not very viable project is it??

I wish the fucking journalists would get it right


Wed, 10 Jun 2009
From: JakChat
Comment by kenyeung
Quoting: Balibob
I think someone got the biz news very wrong in terms of coal out put and reserves,.. shit our friends at bakrie mined 47 million ton of coal lasy year alone in Indonesia so to have a reseve of 5.4 mill as per the biz news,.. not very viable project is it??

I wish the fucking journalists would get it right


Clumsy reporting indeed. Total reserves at Maruwai were not vast though. According to BHP's 2008 annual report, total resource for Maruwai was about 130 million metric tonnes. The 5.4 million tonnes figure seems to be the most it could have mined each year from Maruwai's Haju and Lampunut sites:

The initial development project is the Haju open-cut mine and associated river port. The Haju mine is a small, discrete coal deposit that is expected to initially produce 1 mtpa of metallurgical coal, with expansion potential to 2 mtpa. First production is expected mid-2009. A feasibility study is currently underway for development of a 3-5 mtpa coal mine at the larger Lampunut deposit at Maruwai.


Wed, 10 Jun 2009
From: JakChat
Comment by Balibob
ken,.. I think you should come back here and teach these so called journalists a thing or two,.. I know U have tried in the past but this time bring a big stick

cheers for the update


Wed, 10 Jun 2009
From: JakChat
Comment by Derek Gratis
Quoting: Balibob
ken,.. I think you should come back here and teach these so called journalists a thing or two,.. I know U have tried in the past




Wed, 10 Jun 2009
From: JakChat
Comment by Marmalade
That rings a bell.


Thu, 11 Jun 2009
From: JakChat
Comment by Piss Salon
It does speak volumes. Billiton got its name from Billiton island off Sumatra, since renamed Belitung. Known for tin mining, those wanker brothers Yusril and 'ron (who got voted out of the House hahahahaha), its northern beaches (owned by Tommy and a bunch of Suharto cronies) and Laskar Pelangi, a nicely made but rather simple film.



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