Mining Giants: Analysts Believe Big Is Not Always Better

Mining and Exploration
08/05/2015 21:00

In an article on The Wall Street Journal, analysts comment on mining giant BHP Billiton's decision to set up a company, South32, to house unwanted operations including coal mines and alumina refineries. In the process, it would halve the number of assets it runs and the number of continents on which it operates, leaving BHP focused on a handful of commodities including iron ore, copper and oil. The measure could be one of the biggest breakups in mining history—and could prompt other large mining companies to follow suit, analysts say, adding that some claim Anglo should spin off its diamond-mining subsidiary De Beers because it sells mostly to retail consumers, a different market from the industrial buyers of most bulk commodities.