Company could seek approval from the board for Jansen's expansion as early as June 2018, said chief executive Andrew Mackenzie.
BHP Billiton Mining News
US activist investor steps up pressure on BHP to ditch petroleum. Mackenzie says company already knows what to do to lift value by 50% and double return on capital.
Move comes on the heels of calls from shareholders including activist investor Elliott Management and Australia’s Tribeca Investment Partners for a change of BHP's corporate structure.
BMI Research expects prices to continue sliding for at least the next five years on rising supplies from Australia and Brazil and evidence of Chinese demand cooling earlier than expected.
Workers temporarily blocked access roads to the site in protest for the decision, which they say will inevitably bring a massive wave of layoffs.
Market rumours point at South32 as the most likely buyer, since the miner decided last month to ditch its $200 million acquisition of Peabody Energy’s coal mine in New South Wales.
And why the worst may be over already.
The miner faces another shareholder revolt as Australia’s Tribeca has joined calls by US activist investor Elliott Management for an exit from shale to free up capital.
It’s been a bad week for iron ore, with all indices steeply lower on Friday for a second consecutive day.
In Asia, trading was halted after prices sank 7.3%, which is the maximum a day allowed by Chinese regulators.
The Perth-based miner has agreed to purchase 45 million shares of the Canadian junior at a price of $2.45 per share, or about 15% of Arizona Mining’s outstanding shares.
The company has officially informed workers of its plans to offload the mine, noting that while there are several interested parties, the process could take months.
The miner said decision was unrelated to Elliott Management's call earlier this month to unlock shareholder value by spinning off about $22 billion of BHP's US oil assets.
BMI Research expects prices to continue sliding for at least the next five years on rising supplies from Australia and Brazil and expectations for a surplus.
They're pressing the company not only to accept a proposal by activist investor Elliott Management to spin off its US petroleum business, but to fully demerge all of its oil and gas assets.
Production for the first three months of the year slumped 37% compared with the same period of 2016.
Another 5% iron ore price drop Tuesday slashes $30 billion from top 5 producers' market value in one month.
The miner said it was unwilling to take the steps required to satisfy Australian steel makers to get the approval of the transaction, which would have its major deal since spinning off from BHP in 2015.
Worries about Chinese economy and rising tension surrounding North Korea brings fear trade to mining and industrial metals.
Activist investor Elliott's proposals to break up BHP are riddled with “major flaws” and could end up costing far more to implement than they would save, the company said.
The commodity is now trading below $70 a tonne and has just suffered its largest one-day percentage decline in over a year.
Analysts expect BHP to argue that a demerged petroleum business would need to fund offshore growth projects by raising debt. It may also contend that a stand-alone division won’t have the same ability to defer production until oil prices improve.
After a 85% rise in 2016, iron ore prices are now down 3.2% so far this year, which has placed the commodity in a bear market.
Company says the associated risks of spinning off about $22 billion of its US oil assets and listing them in New York would significantly outweigh any potential benefits.
Coking coal prices gained 86% to $283.10 a tonne this week, the biggest gain in four years.