BHP Billiton signs Indonesian coal project joint venture

The PT Adaro subsidiary has agreed to acquire a 25 per cent interest in the project while BHP Billiton holds the remaining stake.

The project is based on an estimated 774 million tonnes of undeveloped metallurgical and thermal coal resources.

PT Adaro is Indonesia's second largest thermal coal producer and has operations near the BHP Billiton-controlled project.

"These agreements with Adaro provide a strong local partner to ensure the successful development of our world class metallurgical coal interests in Indonesia," BHP Billiton president metallurgical coal Hubie van Dalsen said in a statement on Wednesday.

Completion of the transaction is subject to approvals from the Indonesian government.