BHP spinoff company to include SA aluminum and manganese units

BHP Billiton, the world’s biggest mining company, plans a spinoff of a company which will include assets from aluminum smelters to South African energy as it simplifies its operations.

The new company will be based in Perth with Graham Kerr, BHP’s chief financial officer since 2011, as its chief executive, the Melbourne-based producer said on Tuesday in a statement when announcing a 10% jump in underlying profit.

“In a single step, we will significantly increase BHP Billiton’s focus on the exceptionally large resource basins that underpin its competitive advantage,” chief executive Andrew Mackenzie said in the statement.

Focusing on iron ore, copper, coal and petroleum units that generated about 85% of its sales last year, will raise free cash flow, help boost production growth and deliver stronger return on investment, Mackenzie said in May.

Miners are trimming portfolios as commodity prices retreat and after poorly timed acquisitions in a decade-long $616-billion investment spree led to asset writedowns and management clear-outs. The restructuring would be BHP’s largest since the $3.1 billion spinoff of its steel unit in 2002.

“Investors will have a lot to contend with, not only with the remaining BHP business but the outlook for the demerged entity as well,” Tim Schroeders, a portfolio manager at Pengana Capital, who helps manage $1-billion in equities, including BHP, said on Tuesday in an interview on Bloomberg Television before the results.

BHP shares rose 1.4% to close at A$39.68 (R393)in Sydney trading, before the producer’s full-year financial results were announced. Australia’s benchmark S&P/ASX 200 index advanced 0.7%.– Bloomberg

Jesse Riseborough
Guest Author
Advertisting

EFF ‘circus’ becomes contagion as MPs heckle Malema

ANC MPs test the EFF’s disruptive tactics on the leader of the Red Berets in Sona reply

Ramaphosa ‘neutral’ in Mkhwebane, Parliament impeachment row

However, the president says even if he has a conflict of interest, another Cabinet member could suspend the public protector

Strike-off case pulls in judge

Judge Mushtak Parker is implicated in an application to strike off his former partners. He is also involved in the fight between the Western Cape high court’s judge president and his deputy

One strike and you’re out – registrar tells unions

A municipal workers’ union is the first to be sanctioned for not following the new rule when deciding whether to go on strike
Advertising

Press Releases

Response to the report of the independent assessors

VUT welcomes the publishing of the report of the independent assessors to investigate concerns of poor governance, leadership, management, corruption and fraud at the university.

NWU student receives international award

Carol-Mari Schulz received the Bachelor of Health Sciences in Occupational Hygiene Top Achiever Award.

Academic programme resumes at all campuses

Lectures, practicals, seminars and tutorials will all resume today as per specific academic timetables.

Strategic social investments are a catalyst for social progress

Barloworld Mbewu enables beneficiaries to move away from dependence on grant funding

We all have a part to play to make South Africa work

Powering societal progress demands partnerships between all stakeholders

So you want to be a social entrepreneur?

Do the research first; it will save money and time later

Social entrepreneurship means business

Enterprises with a cause at their core might be exactly what our economy desperately needs

Looking inwards

Businesses are finding tangible ways to give back – but only because consumers demand it