BHP Billiton share price: Miner looks to sell West Africa iron-ore assets

Anglo-Australian mining giant BHP Billiton (LON:BLT) is looking to sell its West African iron-ore exploration assets, a company executive said today.

BHP is the world's third-largest iron-ore producer by volume and a dominant exporter of the commodity in Australia, behind only Rio Tinto (LON:RIO). The company has previously identified its African projects as noncore as the miner focuses on cost-cutting and less expensive mine developments.

Jimmy Wilson, president of BHP's iron-ore division told the AJM Global Iron Ore and Steel Forecast conference in Perth today,

No potential buyers have been identified in the statement.

Upbeat outlook despite iron ore price slump

Data over the weekend revealed that China, the world’s largest steel consumer, had an unexpected trade deficit of $22.98 billion in February, compared to a surplus of $14.8 billion in the same month last year. This stoked fears of a slowdown in China and led to a weakening of the iron ore price.

Benchmark iron ore for immediate delivery into China fell 8.3 percent to an 18-month low of $104.70 a tonne yesterday. The price of iron ore has plunged 22 per cent so far this year, pushing the commodity into bear market territory.

Despite the slump, Wilson also said that he remains confident in the outlook for iron-ore demand, which is underpinned by the expected growth in China's steel output over the next decade. He said,

Meanwhile, Rio Tinto CEO of iron ore Andrew Harding said that the company’s iron ore production ramp up to 290 million tonnes a year was expected to be achieved ahead of schedule.

Commenting on the price of the steel-making commodity, he told the conference in Perth,

Stock movements

Shares in iron ore mining companies have been subdued since yesterday’s slump in the price of the commodity. After falling 1.43 percent in the last trading session, BHP Billiton’s share price continued to decline today. As of 09:34 UTC, the stock had shed 0.53 percent to 1,812.50p.

At the same time, Rio Tinto’ share price had gained 0.20 percent to 3,145.50p, after giving up 2.73 percent yesterday.

As of 09:23 UTC, buy BHP Billiton shares at 1,812.00p.

As of 09:23 UTC, sell BHP Billiton shares at 1,811.00p.

As of 09:26 UTC, buy Rio Tinto shares at 3148.50p.

As of 09:26 UTC, sell Rio Tinto shares at 3147.50p.