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."
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BHP said it expects the transaction to be completed in the second half of 2013.
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