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By Mila Besich Lira
BHP has announced that is has sold its Pinto Valley open pit mine and the San Manuel Arizona Rail Road Company to Capstone Mining Corporation for the sum of $650 million dollars cash. The sale is pending regulatory approval and is expected to be official later this year.
Capstone Mining Corporation is a Vancouver, Canada based mining company. They own mines in Mexico and in the Yukon. They also have development projects in Chile and British Columbia.
“Pinto Valley represents a unique opportunity to acquire a mid-sized producing copper mine in a well-established and low-risk mining jurisdiction with a significant mineral resource,” said Capstone president and CEO Darren Pylot.
In the purchase Capstone will acquire the employees of Pinto Valley and SMARRCO along with the environmental liabilities regarding those properties. BHP will remain the owner of the 2,500 plus acres of land in San Manuel.
Peter Beaven, the BHP Billiton President said the sale of Pinto Valley is an excellent outcome for BHP Billiton shareholders. “It is consistent with our strategy and it takes the transaction value of divestments announced over the last 12 months to US$5.0 billion,” Beaven said. “We are pleased to have reached agreement with Capstone, particularly given their commitment to maintain our environmental and safety standards.”
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