BHP Billiton likely to hire Goldman Sachs and Barclays for Latin American mining assets sale
BHP Billiton [ASX: BHP, LON: BPL] is likely to select Goldman Sachs and Barclays to evaluate the sale of mining assets worth USD 22.5bn, The Australian reported, citing unnamed sources.
According to the report BHP is believed to be seeking to rework mining ventures over which it or its partners have no operational control. The paper said the move could see up to USD 22.5bn in Latin American mining assets come onto the market.
The paper cited unnamed sources as saying that Goldman Sachs and Barclays are close to BHP and likely to win mandates.
The item said the mandates would include reworking BHP’s three non-operated South American mining joint ventures. The item noted that changes could result in several possible permutations and combinations under which BHP or its partners become operator of the assets.
Talks are centered on three mining assets, Brazil’s Samarco iron ore, Cerrejon thermal coal in Colombia, and Antamina copper/zinc in Peru. Samarco is jointly held by BHP and Vale [BVMF: VALE3, VALE5], Cerrejon is owned by BHP, Glencore [LON: GLEN], and Anglo American [LON: AAL], and Antamina is owned BHP, Glencore, Teck [TSE: TCK.A, TCK.B], and Mitsubishi [TYO: 8058]. The paper noted that Anglo is believed to be interested in exiting Cerrejon. BHP may prefer to operate Antamina, the item noted.
The Australian