The BHP Group Ltd (ASX: BHP) share price is currently down 2.3% at $40.08 amid media speculation that the ASX mining share is considering selling some of its assets.
As we can see on the chart below, 2024 has been a rough year for the mining giant – it's down more than 20%. Would simplifying the balance sheet be a helpful move?
BHP has a portfolio of large, operational mines across various commodities, including iron ore, copper and coal. The company also owns several deposits and smaller mines that management may not consider core assets.
According to reporting by Bloomberg, the miner is considering reducing the number of assets it owns.
BHP to sell copper assets?
Bloomberg has reported that BHP is planning to sell the Brazilian copper and gold assets acquired when it bought the formerly ASX-listed business Oz Minerals Ltd.
BHP completed the Oz Minerals acquisition last year. It included a gold deposit and four small, though high-grade, copper-gold mines located in the Brazilian state of Para.
The ASX mining share has reportedly engaged Banco Santander to advise in talks on a potential sale after it completed a strategic review of various assets, including these Brazilian assets.
Bloomberg was told by BHP's Brazil country manager last year that the company had no intention of divesting Samarco Mineracao, an iron ore business it jointly owns along with South American miner Vale.
Shifting priorities in South America
Just over a week ago, BHP announced it was acquiring Filo Corp with partner Lundin Mining. BHP is going to form a 50/50 joint venture to progress the Filo del Sol and Josemaria copper projects located in the Vicuna district of Argentina and Chile.
BHP's total cash payment for the proposed transaction is expected to be around US$2.1 billion.
If the reported talks about asset sales are true, BHP is planning to divest these small assets and focus on larger projects.
BHP CEO Mike Henry said:
This transaction aligns with BHP's strategy to acquire attractive early-stage copper projects and enter into strategic partnerships with parties where complementary skills and experience can deliver long-term economic and social value.
The joint venture with Lundin Mining will advance the development of the Vicuña district, which offers the potential to become a major contributor to the economy of Argentina for decades to come. At the same time, by partnering with Lundin Mining, BHP is continuing to invest in the growth of a robust mining sector in Canada.
BHP share price snapshot
In just the last month, the BHP share price is down around 8% amid global share market volatility.
