In a market where it seems everyone wants to speculate on the next acquisition, major global mining conglomerate BHP Billiton (NYSE:BHP) is publicly considering a different strategy. While BHP stands with Rio Tinto (NYSE:RIO) and Xstrata as among the world's most diversified natural resource companies, BHP has publicly announced that it is reviewing the future of its diamond mining operations.
More specifically, BHP will be evaluating whether to keep or sell assets including the EKATI mine and the Chidiak project in Northern Canada. At present, BHP owns 80% of EKATI and 51% of Chidiak.
Why BHP is Likely to Sell
While a final announcement probably won't come until January of 2012, BHP is almost certain to look for the exit with this business. BHP, like most large miners, wants to focus on large, long-lived, expandable asset bases. To that end, this diamond business just doesn't fit the bill.
Read the full piece here:
http://financialedge.investopedia.com/financial-edge/1211/Diamonds-Are-No-Longer-BHPs-Best-Friend.aspx#axzz1gFWhcqZM
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