Major miners sell assets to lighten their debt burdens after commodities rout
Since last year’s reversals on the commodities front left big miners with sky-high debt, they have been offloading assets, but better prices have reduced pressure to sell
Major miners are selling assets after last year’s global commodities rout left them with high debt. But recovery in raw materials prices has reduced pressure to sell, and deals have slowed. China, where a stimulus package spurred this year’s commodities rally, is the biggest potential buyer. Following is a list of the main mining companies, some of the biggest sales so far and what assets are on offer: BHP Billiton Market capitalisation: £72.7bn Net debt: $26.1bn Share price movement this year: up 60.7% It spun off South32 in 2015 to focus on core business. The world’s largest exporter of metallurgical coal, BHP agreed to sell coal assets in Indonesia to partner Adaro Energy for $120m. Together with Exxon Mobil, BHP Billiton said it was considering selling depleting energy assets in Australia, including Kingfish, that country’s largest discovered oilfield. It agreed to sell half of its stake in the Scarborough area gas fields off Western Australia for $400m. Sources say BHP may also...
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