BHP Billiton to invest $2.5billion in nickel projects

Desy Nurhayati, The Jakarta Post, Jakarta

BHP Billiton of Australia, the world's third-largest mining company, is set to develop two mining projects in Halmahera and West Papua with an estimated investment of more than US$2.5 billion.

Chairman of the Investment Coordinating Board (BKPM) M. Luthfi said Thursday the company would open nickel mines and refineries in the two provinces.

Although the company declined to cite the exact figure of the investment, Luthfi estimated it would reach more than $2.5 billion based on previous projects of mining firm Rio Tinto of Australia.

"BHP Billiton will cooperate with (state-owned) PT Aneka Tambang (Antam) on the two projects. The two companies will sign the agreement within the next two weeks," said Luthfi after accompanying visiting BHP Billiton president Jimmy Wilson in meeting President Susilo Bambang Yudhoyono.

Luthfi said Antam would hold 50 percent interests in the two projects, which are expected to be among the largest mining investments in the country.

Lutfi said the mining and production process would take about five to seven years, and would be conducted in three phases.