Pay day for BHP Billiton directors

[miningmx.com] – BHP Billiton’s iron ore president was the biggest seller of newly vested shares after the group said last week it will spin off smaller assets and expand output of the steelmaking raw material.

Details of the share trades, which took place on Thursday and Friday last week after BHP announced details of the planned demerger, show Jimmy Wilson, president of the iron ore division, was the biggest seller, getting rid of 106,111 shares on the Australian Stock Exchange. He was allocated 105,961 shares last week that vested under various incentive schemes.

Wilson gained A$4.06m (R40.4m) from the share sale, which was done “partially to meet expected tax obligations’, BHP said in the statement. He continues to hold a direct stake in 175,160 BHP shares following the sale.

The miner said last week it was unlikely iron ore prices, which have fallen 35% this year on the spot market, would climb back above $100 per tonne.

Despite the lower prices, it announced plans to expand its iron ore export capacity to 290 million tonnes a year at a cost of $3.25bn. It produced 225 million tonnes in the year ended June.

Other big sellers included Peter Beaven, president: copper, and Dean Dalla Valle, president: coal, who both sold shares in part to meet expected tax obligations. Beavan sold 45,712 of his newly vested allocation of 45,584 shares, for nearly A$1.8m. Dalla Valle gained A$1.4m through the sale of 37,705 shares, also almost his entire new vested allocation of 37,556 shares.

Transactions by other members of the group management committee were done to meet expected tax obligations, BHP said.

Graham Kerr, chief financial officer and CEO-designate of BHP’s new spinoff company, acquired 48,323 new shares last week through various incentive schemes, and sold 23, 635, gaining just over A$900,000. Tim Cutt, president: petroleum and potash, acquired 36,510 shares and sold 16,292, gaining more than A$620,000.

Other members sold a small portion of their newly vested shares. Mike Fraser, president: human resources, sold 3,014 shares on the London Stock Exchange for £58, 833 (R1m); group company secretary Jane McAloon sold 12,509 shares for A$478,219; and Daniel Malchuk, president: aluminium, manganese and nickel, gained A$109,491 from the sale of 2,864 shares.

Mike Henry, president: HSE (health, safety and environment), marketing and technology, sold only 2,711 of his 56,896 newly acquired shares, raising A$103,641.