BHP considers sale of Arizona copper mine
LONDON |
Oct 24 (Reuters) - BHP Billiton is exploring the sale of its Pinto Valley copper mine in Arizona, which might fetch less than $1 billion, the Financial Times reported on Wednesday.
BHP is working with advisers to consider a sale of the mine, the FT said, citing people familiar with the matter. The report also cited sources as saying that the miner was working with Citigroup.
BHP declined to comment.
A source close to the situation said Pinto Valley was one among a list of assets BHP is reviewing as it narrows its focus on large, scaleable assets.
BHP said in February that it would restart operations at the Pinto Valley mine, with annual production capacity of about 60,000 tonnes of copper and which also produces molybdenum concentrate.
The Financial Times cited people familiar with the matter as saying that the possible sale was unrelated to an incident last month in which a contract worker at Pinto Valley was fatally injured and operations were suspended.
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LONDON--The chief executive of mining titan BHP Billiton Ltd BHP -0.79% said Thursday that the company will divest assets that don't meet its investment criteria, but declined to comment on a report that it intends to sell its Pinto Valley copper mine in Arizona.
"On a more general theme, like we have done over the last 10 years, all those assets that are not long life, not high margin, not huge, not operating, progressively we will continue to divest those assets," Marius Kloopers told reporters in response to the report this week in the Financial Times.
The U.K. newspaper, citing people familiar with the matter, said BHP now plans to sell the Pinto Valley copper mine, having shut it down in 2009 due to the financial crisis. It did not identify the people.
BHP announced plans to restart the mine in February and has committed $195 million to resuming operations there.
"We are in the process of restarting the assets in order to give value to the asset," he said on the sidelines of the company's annual general meeting. "The asset is not yet fully ramped up [but] we like the progress so far."
The mine produces copper and molybdenum and has a concentrate capacity of 60,000 tons of copper a year. BHP has a five-year production plan in place for the mine with further extension options possible.
