BHP considering selling $10 billion of assets

Normal
0

false
false
false

MicrosoftInternetExplorer4

st1:*{behavior:url(#ieooui) }

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:”Table Normal”;
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-parent:””;
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:10.0pt;
font-family:”Times New Roman”;
mso-ansi-language:#0400;
mso-fareast-language:#0400;
mso-bidi-language:#0400;}

BHP Billiton may be considering selling close to $10 billion of assets in Australia and around the world, according to a Deutsche Bank report.

Bloomberg reports the $4.7 billion Cannington silver, lead, and zinc mine in Queensland and Western Australia’s $1 billion Worsley aluminum smelter were possible options for a sale.

Other aluminum, nickel, and coal mines may also be considered as the company looks to trim its portfolio.

According to Bloomberg BHP CEO Marius Kloppers said late last year the company may sell some assets to help fund expansions in the shale gas, iron ore, and coking coal sectors.

Earlier this month BHP sacked 155 workers from its Nickel West operations in WA, blaming a falling nickel price and high Australian dollar.

It said the changes were part of a restructuring of the nickel business to create a "simpler, leaner and more competitive organization".

It also made a complete exit from the titanium market, selling its final 37 per cent interest in South African-based Richards Bay Minerals to Rio Tinto.

BHP recently posted a strong first half profit of $9.2 billion, which it partially attributed to strong performance in iron ore and rising natural gas prices.

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.