BHP Billiton, the world’s largest resources group, has sold a small, noncore copper mine in Arizona and an associated railway company for $650m, bringing its sale of assets in the past year to $5bn, BHP announced on Monday.
Analysts widely expect further asset sales from Australia-based BHP after Marius Kloppers stepped down as CEO. He was replaced by Andrew Mackenzie who has said he will focus on securing profit margins and cash flows by ensuring optimal performances from the group’s assets.
BHP sold Pinto Valley and the San Manuel Arizona Railroad Company to Canada’s Capstone Mining for $650m in cash in a deal subject to regulatory approval. The transaction should be concluded in the second half of this year.
“The sale of Pinto Valley is an excellent outcome for BHP Billiton shareholders,” Peter Beaven, president of BHP Billiton Copper, said yesterday. “It is consistent with our strategy and it takes the transaction value of divestments announced over the last 12 months to $5bn.”
Analysts said the price was well above what the market was expecting and that it was no surprise BHP was selling the business because of its small size and limited remaining life. Continue Reading →