Billiton forms RI venture

Billiton forms RI venture

LONDON (Dow Jones): Billiton PLC said Wednesday that it has signed a joint venture agreement with Winnin Pty. Ltd and PT Taraco Mining to explore for coal in Indonesia.

Winnin is a wholly owned subsidiary of Nissho Iwai Corp. of Japan. Taraco is an Indonesian registered company holding a coal contract of work awarded by the Indonesian government.

The CCOW permits exploration of coal in an area of East Kalimantan, located immediately adjacent to the existing Kaltim Prima Coal operation.

Billiton and Winnin will acquire 51 percent and 9 percent respectively of Taraco for US$1.2 million required under the terms of the CCOW. Billiton and Winnin will additionally provide funding for the exploration process, Taraco refunding their share of expenditure if mining takes place.