|Project Details||The IndoMet Coal Project, which was initially referred to by BHP Billiton as the Maruwai coal project, covers five potential coal deposits in East and Central Kalimantan in Indonesia. In 2016 a part of it was sold to Adaro. The concessions contain more than 1.2 billion tonnes of metallurgical and thermal coal that would be shipped to Asian markets. . Later is was reported  that BHP Billiton agreed to sell its coal assets in Indonesia to its partner, Adaro Energy. BHP did not disclose the price for its 75 percent stake in IndoMet Coal. Adaro, however, Indonesia’s second largest thermal coal producer, said in a statement the deal was worth $120 million and would “become effective upon the fulfilment of requirements in the share sale agreement, including necessary approvals from the Government of the Republic of Indonesia.” The amount is well below the $335 million Adaro paid for a 25 percent stake in IndoMet in 2010. |
In 2014 the government withdrew support for the construction of a railway that would transport coal from the remote mine sites to port.. Also in 2014 it was reported  that villagers in remote Central Kalimantan lodged a claim for legal title to 1,000 hectares of land within BHP Billiton’s vast IndoMet coal project area under a new land rights scheme in the province. The residents of Maruwei, one of the closest villages to IndoMet’s “first stage” Haju mine, have mapped the boundaries of the 1,000-hectare area in question using GPS and computerized mapping systems, and submitted detailed documentation of the claim to the Central Kalimantan government.
Maruwei’s headman described the process of preparing the claim as a “race” to preserve this section of the community’s customary land, which is used for cultivating rice, rubber and crops. “When BHP comes, it will be a restricted area,” headman Suwanto tells the Jakarta Globe, through an interpreter. “So we have to race against BHP to claim this land under the Dayak Misik scheme.”. Dayak Misik, introduced by the Central Kalimantan government in 2014, is a program that aims to recognize the customary land rights of the province’s indigenous Dayak inhabitants by delivering title for 10 hectares of land to every village for communal use and five hectares to each household. “The mapping exercise has created a stronger political pressure on the national government to recognize customary lands and customary rights to land,” says Nanang Indra Kurniawan, a lecturer at the School of Politics and Government at Yogyakarta’s Gadjah Mada University, who is researching the Central Kalimantan government’s customary land rights programs. “This pressure has been increasing following the Constitutional Court decision on customary forests in 2013.”
The IndoMet project, a joint venture between Australian miner BHP Billiton and Indonesia’s Adaro Energy, covers 350,000 hectares of coal-mining concessions across Central and East Kalimantan, which are estimated to contain more than 1.25 billion metric tons of thermal and coking coal. The project is expected to open up a new frontier in coal mining inside the internationally agreed Heart of Borneo conservation zone if the construction of the railway goes ahead. Activists delivered a petition containing 9,000 signatures to BHP Billiton headquarters in both Melbourne and London, calling on the company to withdraw from the project.