BHP Studies To Simplify Portfolio, To Focus On Iron Ore, Copper, Coal, Petroleum

(RTTNews) - Responding to recent media speculation about its portfolio, Anglo-Australian mining giant BHP Billiton (BHP, BHP.AX, BBL, BLT.L) Tuesday said it continues to study simplifying its operations to focus on iron ore, copper, coal and petroleum assets.

The miner considers these businesses as its four pillars, with potash as a potential fifth. By increasing focus on these, BHP expects to be able to more quickly improve the productivity and performance of its largest businesses.

Earlier, the media reported that the company is considering a A$20 billion spin off of less-profitable assets, and that it has appointed Goldman Sachs to advise on options that include a possible demerger of non-core assets such as aluminum, bauxite and nickel.

"We continue to actively study the next phase of simplification, including structural options, but will only pursue options that maximise value for BHP Billiton shareholders," BHP said in its statement.

According to the firm, a portfolio focused on major iron ore, copper, coal and petroleum assets would retain the benefits of diversification, generate stronger growth in free cash flow and a superior return on investment.

The company said it has announced or completed divestments in Australia, the United States, Canada, South Africa and the United Kingdom in the last two years alone, including petroleum, copper, coal, mineral sands, uranium and diamonds assets.

Any course of action remains subject to detailed review and an assessment of alternatives, the firm said.

In Australia, BHP shares closed Tuesday's trading at A$37.05, up A$0.58 or 1.59 percent.