JSE-listed mining giant BHP Billiton today, 29 April 2013, announced the sale of its Pinto Valley mining operation and the associated San Manuel Arizona Railroad Company (SMARRCO) to Capstone Mining Corporation (Capstone) for $650 million.
BHP Billiton is also a global organisation with over 100 locations throughout the world.
Pinto Valley is an open-pit copper mining operation located east of Phoenix in the Globe-Miami district of Arizona.
BHP Billiton currently has a 100% ownership interest in both Pinto Valley and SMARRCO.
Peter Beaven, BHP Billiton President says the sale of Pinto Valley is an excellent outcome for BHP Billiton shareholders.
“It is consistent with our strategy and it takes the transaction value of divestments announced over the last 12 months to US$5.0 billion,” says Beaven.
“We are pleased to have reached agreement with Capstone, particularly given their commitment to maintain our environmental and safety standards.”
The transaction is subject to regulatory approval and other customary conditions. It should be completed in the second half of the 2013 calendar year.