[miningmx.com] – BHP Billiton said a portfolio consisting of iron ore, copper, coal and petroleum, with potash as “a potential fifth” asset would retain the benefits of diversification but generate stronger growth in cash flow.
It was responding to speculation in The Australian that it was considering a demerger of its aluminium, manganese and nickel assets. “By increasing our focus on these four pillars, with potash as a potential fifth, we will be able to more quickly improve the productivity and performance of our largest businesses,’ BHP Billiton said.
“While today’s announcement is certainly an unusual one, the group is simply reiterating the same strategy that it has highlighted for some years now,” said Investec Securities in a morning note.
The Australian commented that the sale of assets by BHP Billiton may interest Mick Davis, founder of X2 Resources which said on March 31 that it had raised $3.75bn and that the “investment process” was due to begin.
