BHP Billiton has agreed to sell its majority stake in the IndoMet coal project in Indonesia to its local joint venture partner Adaro Energy.
The mining giant is believed to have sold its 75 per cent stake in the project for $US120 million ($A160.92 million).
"We concluded that although the project could support a larger scale development, BHP Billiton has a range of other growth options that are more attractive," IndoMet Coal president James Palmer said.
IndoMet holds metallurgical and energy coal deposits in Kalimantan. The project has been in production since 2015, and currently holds production capacity of one million tonnes.
BHP has looked to preserve cash amid a prolonged commodities downturn and turned selective on fresh investments after suffering a $US5.7 billion half year loss.
