Key Developments: Bhp Billiton PLC (BBL)
22 May 2013
Latest Key Developments (Source: Significant Developments)
BHP Billiton PLC Sells Pinto Valley Mining Operation and San Manuel Arizona Railroad Company to Capstone Mining Corp.
BHP Billiton PLC announced that it has signed a definitive agreement to sell its Pinto Valley mining operation (Pinto Valley) and the associated San Manuel Arizona Railroad Company (SMARRCO) to Capstone Mining Corp. (Capstone) for an aggregate cash consideration of USD 650 million. The transaction is subject to regulatory approval, and other customary conditions, and is expected to be completed in the second half of the 2013 calendar year. Under the terms of the agreement, Capstone will assume the business's environmental liabilities. BHP Billiton employees working at Pinto Valley and SMARRCO will become employees of Capstone as part of the transaction. Full Article
Reuters reported that Exxon Mobil Corp and BHP Billiton plc are planning to build the floating liquefied natural gas (LNG) vessel in offshore northwestern Australia. The vessel would produce 6 million tonnes to 7 million tonnes per annum (mtpa) of LNG from Australia's Scarborough field, about 220 kilometres (137 miles) from the Western Australian coast, beginning in 2020-2021. Exxon and BHP, which are 50-50 joint venture partners in the Scarborough development, expect to make a final investment on the plant in 2014-2015, Exxon said in the filing. It did not give any cost estimates for the plant. Full Article
BHP Billiton PLC announced that it has declared an interim dividend of $0.57 per share. which will be paid on March 28, 2013. Full Article
BHP Billiton plc announced that Marius Kloppers will retire as Chief Executive Officer and a Director of the Company on May 10, 2013 and that Andrew Mackenzie, will succeed him and join the Board on that date. Marius will retire from the Group on October 1, 2013. Full Article
BHP Billiton plc Considers Sale Of UK Petroleum Operations; To Sell Minority Interest In Planned Browse Gas-export Project To PetroChina Co Ltd-DJ
Dow Jones reported that BHP Billiton plc is considering exiting its U.K. petroleum operations, including crude oil and natural gas fields and a processing plant, as part of ongoing efforts to tighten the focus of its portfolio of mining and energy assets. The Company has launched a strategic review of the business and is exploring options, include the possible sale of the assets. BHP operates Liverpool Bay, which consists of five producing offshore gas and oil fields in the Irish Sea and the Point of Ayr onshore processing plant in north Wales, and associated infrastructure. It owns a 46.1% stake in the operation, while ENI SpA owns the rest. Earlier this month, BHP agreed to sell a minority interest in the planned Browse gas-export project off Western Australia to PetroChina Co Ltd for USD1.63 billion in cash. Full Article
BHP Billiton plc announced that it has signed a definitive agreement with PetroChina International Investment (Australia) Pty Ltd to sell its 8.33% interest in the East Browse Joint Venture and 20% interest in the West Browse Joint Venture, located offshore Western Australia, for a cash consideration of USD1.63 billion. The transaction is subject to regulatory approval and other customary conditions. Completion is expected in the first half of calendar year 2013. Full Article
BHP Billiton plc announced that it has signed definitive agreements to sell its diamonds business, comprising its interests in the EKATI Diamond Mine and Diamonds Marketing operations, to Harry Winston Diamond Mines Ltd. (Harry Winston) for an aggregate cash consideration of US$500 million. The transactions are subject to regulatory approval and other customary conditions. Completion is expected in the first quarter of calendar year 2013. Under the terms of the agreements, Harry Winston will assume all of BHP Billiton's obligations under EKATI's Environmental Agreement with the Government of Canada and the Northwest Territories, Socio-Economic Agreement with the Government of the Northwest Territories, Impact and Benefit Agreements with Aboriginal Groups and pension liabilities linked to the mine's defined benefit scheme. Harry Winston is also committed to maintaining EKATI's environmental standards and will continue to work with local businesses and communities in the Canadian North. All BHP Billiton employees working at EKATI, in Yellowknife and in Diamonds Marketing in Antwerp will become employees of Harry Winston as part of the transaction. Full Article
BHP Billiton plc announced that it has priced a five year AUD1.0 billion note issue under its Australian Medium Term Note Program. The Australian dollar notes will pay interest at 3.75% and mature in October 2017. The proceeds will be used for general corporate purposes. Full Article
Reuters reported that BHP Billiton plc plans to shed an undisclosed number of jobs in iron ore, its most profitable business, as it battles weaker demand and higher costs, adding to mining job losses in Australia. Full Article
Reuters reported that BHP Billiton plc is among the companies talking to Petrobras about buying a stake in the Brazilian state-led oil company's Gulf of Mexico oil fields, the Wall Street Journal reported. Petrobras has said it is looking for a buyer for a portion of its multi-billion dollar Gulf of Mexico holdings. Full Article
CONAKRY, May 22 - The government of Guinea said on Wednesday it has given approval to BHP Billiton and Global Alumina to sell their stake in a bauxite and alumina project to Dubai Aluminium Co (Dubal) and Mubadala Development Co.