Sydney, Australia (BBN)-BHP Billiton plans to spin-off some of its assets into a new $14bn (£8.4bn) metals and mining company in order to simplify its operations.
The world’s biggest mining firm also posted a rise in annual profits of 23% to $14bn, missing analysts’ forecasts, reports BBC.
BHP chief financial officer Graham Kerr will head the new company, which will contain the aluminium, coal, manganese, nickel and silver operations.
The company will be based in Perth and listed on Australia’s stock exchange.
BHP said the demerger will allow it to focus on core businesses in iron ore, copper, coal, petroleum and potash production.
“By concentrating on what we do best, the development and operation of major basins, we can improve our productivity further, faster and with greater certainty,” BHP chief executive Andrew Mackenzie said in a statement.
The Australian-listed shares of BHP closed 1.4% higher ahead of the announcement.
BHP Billiton ranks among the world’s largest producers of major commodities which include aluminium, coal, copper as well as silver and uranium. The company also holds substantial interests in oil and gas.
Last week, the company said in a statement that it is looking into ways to further simplify its corporate structure, to “retain the benefits of diversification, generate stronger growth in cash flow and a superior return on investment”.
BHP’s global headquarters is located in Melbourne, Australia. The company’s shares are listed on two stock exchanges – in London and Australia.
The company also has a secondary listing on the Johannesburg stock exchange and two American Depositary Receipt listings on the New York Stock Exchange.
BBN/AD-19Aug14-4:10pm (BST)