BHP sells off 15% stake in Jimblebar mine

BHP Billiton (ASX: BHP) announced yesterday that it has extended its long-term financial joint venture with Japan-based ITOCHU and Mitsui & Co conglomerates to raise an additional $1.5 billion in BHP’s operations.

Per the new terms, ITOCHU and Mitsui will purchase 8% and 7%, respectively, of BHP Iron Ore (Jimblebar) Pty Ltd, via a combination of both shares and loans. Jimblebar mine is set for a major expansion in Q1 CY2014, and ITOCHU’s and Mitsui’s newest decision represents further belief in the area’s opportunity. Currently, the two corporations own a collective 30% of BHP’s Western Australian Iron Ore mine, rail, and port infrastructure operations.

“We are pleased to extend our successful, long standing joint venture relationship with ITOCHU and Mitsui,” said BHP Iron Ore President Jimmy Wilson. “The new Jimblebar mine will have initial production capacity of 35 million tonnes per annum (100% basis) with future expansion potential. Once fully operational this will bring Western Australia Iron Ore’s supply chain capacity to 220 million tonnes per annum (100% basis).”

BHP knows it – and so do smart investors. Limited oil supply and growing demand mean oil prices are likely to rise over time. Position yourself to profit from this trend now, with The Motley Fool’s brand-new FREE research report, “3 Oil Stocks to Send Your Portfolio Gushing Higher”.

More reading

Motley Fool contributor Justin Loiseau has no position in any stocks mentioned in this article. You can follow him on Twitter @TMFJLo.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.