BHP Billiton agrees to sell Pinto Valley to Capstone Mining Corp.

published 29 April 2013

FTSE 100 mining giant BHP Billiton has signed a definitive agreement to sell its Pinto Valley operation and the associated San Manuel Arizona Railroad Company (SMARRCO) to Capstone Mining Corp.

Under the $650m deal, Capstone will assume the business's environmental liabilities, and BHP Billiton employees working at Pinto Valley and SMARRCO will become employees of Capstone.

BHP Billiton President of Copper, Peter Beaven, said: "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 $5.0bn. We are pleased to have reached agreement with Capstone, particularly given their commitment to maintain our environmental and safety standards."

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.