Under the $650 million deal, which also includes the copper mine’s associated San Manuel Arizona Railroad Company (SMARRCO), Capstone will assume the business's environmental liabilities, and BHP Billiton employees working at Pinto Valley and SMARRCO will become employees of Capstone.
BHP has been looking to restructure its business and offload non-core assets, amid a decline in global demand and falling commodity prices. The mining group has said that it wants to focus on core businesses such as iron ore and coal.
BHP Billiton President of Copper, Peter Beaven, 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 $5 billion. We are pleased to have reached agreement with Capstone, particularly given their commitment to maintain our environmental and safety standards."
The transaction is subject to regulatory approval and is expected to be completed in the second half of 2013.
