BHP to sell 80% stake in Arutmin

BHP to sell 80% stake in Arutmin

Dow Jones, Melbourne

BHP Billiton (BHP), an Australian-based global resources
company, said Tuesday it will sell its 80 percent stake in
Indonesian coal operation PT Arutmin Indonesia to PT Bumi
Resources for US$148 million.

Arutmin operates two thermal coal mines in South Kalimantan
that together produce 11 million metric tons a year.

After the sale BHP Billiton will continue to provide marketing
services to the mines. BHP Billiton has an agreement to market 75
percent of Arutmin's production.

In a statement, BHP Billiton said it was required by the
Indonesia government to sell down its interest in Arutmin to
allow majority Indonesian ownership.

BHP Billiton's president of energy coal, Mike Oppenheimer,
said the sale was done on a "sound commercial basis," while the
marketing agreement "provides a strong platform for repositioning
and further developing our investments in Indonesia."

BHP Billiton's continuing interests in Indonesia comprise
management of PT BHP Kendilo Coal Indonesia, a thermal coal mine
in East Kalimantan. It also has a range of advanced exploration
developments.

The other 20 percent of Arutmin is held by PT Bakri and
Brothers.