BHP Billiton still mulls partial coal asset sale

: Coal, Coking coal, Metals
14/08/15

UK-Australian mining firm BHP Billiton said is looking at selling a selection of assets, which may include some of its thermal coal ventures in South Africa and thermal and coking coal projects in Australia.

The company had already indicated in May last year said the company would look to sell off its non-performing Australian coal assets, as it seeks to further cut costs and improve productivity.

Some of BHP's thermal coal assets are likely to be potential sale targets, as are its lower margin coking coal operations, such as the 3.5mn t/yr Appin mine in New South Wales in Australia. BHP has already temporarily closed its Norwich Park and Gregory open pit coking coal mine in neighbouring Queensland.

But the hard coking coal assets in the Bowen basin are among the "four pillars" that BHP Billiton will focus its future strategy on. The other key pillars are iron ore projects in Western Australia, its petroleum and copper businesses. A possible fifth pillar is potash, where the company is looking to develop deposits in Canada.

BHP has hinted that it was looking at selling its nickel, aluminium, alumina and manganese interests. Many of these assets, and along with the South African coal mines, were part of Billiton when it merged with BHP in 2001. Former BHP Billiton chief executive Marius Kloppers was an executive at Billiton at the time of the merger, having managed its aluminium and marketing businesses. He was replaced by current BHP Billiton chief executive Andrew Mackenzie in May 2013.

km/rjd

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