SYDNEY-- BHP Billiton Ltd. said it favors spinning off more
unwanted assets, in a move to narrow its focus to commodities such
as iron ore and petroleum which account for the bulk of its
earnings.
BHP Billiton, the world's largest mining company by market
value, didn't specify which assets it might sell to concentrate on
producing iron ore, copper, coal and petroleum.
Other assets include nickel, manganese and aluminum operations,
which analysts believe will form the rump of a separately listed
company.
BHP Billiton first signaled it may sell some assets in April as
part of a restructuring, but didn't say how this would be
achieved.
"A demerger of a selection of assets is our preferred option,"
BHP Billiton said in a filing to the Australian Securities Exchange
on Friday.
BHP Billiton has already sold billions of dollars of operations
in the past couple of years as management looked to cut debt and
boost shareholder returns. It sold its Yeelirrie uranium deposit in
Western Australia to Cameco Corp. for US$430 million and its
diamonds business to Dominion Diamond Corp. for US$553 million.
"The board has continued to study various structural
alternatives including at its meeting this week," the company said.
"The board expects to consider this, and other matters, when it
reconvenes next week."
BHP Billiton is due to report full-year results Tuesday.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
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