Billiton set to spin off unwanted assetsFin 24 articleThis means that BHP Billiton will diminish its exposure to South Africa to virtually nothing, as most of these unwanted assets are based here.
These assets, particularly the aluminium assets, are battling to be profitable despite a controversial deal with Eskom which provides Alusaf, the mining giant’s aluminium subsidiary, with electricity at a price that is subsidised by the tax payer.
It has also been known for a long time that international mining groups’ market value is inhibited by exposure to South Africa, as political uncertainty about mining rights and a very volatile labour market is a deterrent for overseas investors.
Another step towards disinvestment in ZA. Thanks Gov. Wonder what will happen re. Alusaf - I want it closed down so that there is sufficient electricity to power up my desktop and post here
Rand is overvalued - unless this news has not yet sunk home.
