BHP Billiton analyzes the creation of a new company for minority metals
This separation could be worth $ 14,000 million, according to a report delivered by the company.
BHP Billiton said on Friday its preference for a split of their aluminum, manganese and nickel unwanted assets, setting the stage for the creation of a separate company which according to a report could be worth $ 14,000 million.-
BHP said its board is considering a split in the meetings prior to its announcement of annual results next week.
A report said that plans are well advanced and would include Nickel West business, that the world’s largest miner has been trying to sell.
“A split of selected assets is our preferred option,” said the company, which has a market capitalization of US $ 185,000 million, in a statement to the Australian stock exchange.
The company has long suggested that they wanted to sell or spin off its manganese, aluminum and nickel assets, which little contribute to their earnings, and said on Friday that the simplification of the company, “would generate stronger growth in cash flow and a higher return on investment”.
BHP depends on its iron ore business for most of their profits in the financial year 2014, after beating its own guidance for the full year of production from raw material extraction to a record 225 million tons.
Source: El Mercurio
