BHP Billiton, the world’s largest mining company has announced plans to spin off some of its assets into a new $14 billion metals and mining company.
The new structuring has created NewCo, which will list on Australia’s stock market, as well as a secondary listing in South Africa, following approval from regulators. This move has impacted the company’s London-listed shares which fell nearly 4%.
BHP chief financial officer, Graham Kerr will head the new company, which will contain the aluminium, coal, manganese, nickel and silver operations.
BHP ranks among the world’s largest producers of major commodities, as well as holding a substantial interest in oil and gas. The company has said that the move will allow it to focus on core businesses in iron ore, copper, coal and petroleum.