SYDNEY, Australia—BHP Billiton, the world’s biggest miner, announced plans to split off some of its smaller assets into a separate company, as it posted a $13.8 billion annual profit.
Melbourne, Australia-based BHP said the reorganization will allow it to concentrate on its mainstay iron ore, copper, coal, petroleum and potash businesses.
The new company, which will have BHP’s current chief financial officer Graham Kerr as its CEO, will include some of BHP’s assets from five countries, including aluminum, nickel, manganese, silver and coal.
It will be based in Perth, Australia, and listed on the Australian Securities Exchange, with a secondary listing in South Africa.
“We believe the proposed demerger, if implemented, will accelerate the simplification of the group’s portfolio, provide investors with choice and unlock value in both companies,” BHP chairman Jac Nasser said in a statement.
The proposed split is subject to regulatory approvals and will be put before shareholders for a vote. The spinoff is expected to be completed in the first half of 2015.
Meanwhile, BHP on Tuesday posted a $13.8 billion profit for the 12 months to June 30, up more than 23 per cent from last year. Revenue was up 1.9 per cent to $67.2 billion.
The results follow another strong year for the company’s iron ore business, with production up 20 per cent in 2014.