BHP Billiton Plans to Sell 10 Assets After Debt Rises to Record; BHP has gone from holding $200 million in net cash at the end of 2010 to net debt of $30.4 billion at the end of 2012
March 9, 2013 Leave a comment
BHP Billiton Plans to Sell 10 Assets After Debt Rises to Record
BHP Billiton Ltd. (BHP), the world’s largest mining company, is planning to sell about 10 of its assets amid a rise in debt levels after a two-year metals boom driven by Chinese demand stuttered.
The Gregory-Crinum coal mine in Australia’s Queensland state is among the assets being considered for sale, spokeswoman Eleanor Nichols said by phone today. The Australian newspaper first reported that Chief Financial Officer Graham Kerr told equity analysts last week the divestment program was focused on at least 10 BHP assets. The company owns mines, oil and gas wells, and processing plants.
Global mining companies are selling off businesses after slumping metal prices triggered more than $60 billion of writedowns to mineral resources. BHP’s debt has risen to a record $30.4 billion and Chief Executive Officer Marius Kloppers last month joined his counterparts at Rio Tinto Group and Anglo American Plc in stepping down from his role. Read more of this post