BHP Billiton today announced that a consortium comprising subsidiaries of
BHP Billiton, Anglo American plc and Glencore International AG ("the
Consortium") has signed an agreement to acquire all of the ownership
interests in International Colombia Resources Corporation ("Intercor") from
Exxon Mobil Corporation.
Intercor owns 50 per cent of the Cerrejon Zona Norte (CZN) mining operation
in Colombia, as well as rail and port infrastructure in the region, and is
the operator of these assets.  The other 50 per cent interest in CZN was
acquired by the Consortium from the Colombian Government in November 2000.
Following completion of the transaction, the Consortium will have 100 per
cent ownership of CZN.  BHP Billiton and the other Consortium members will
each have a 33.33 per cent interest in the operation (up from 16.67 per cent
interest prior to the acquisition).
The net asset value of Intercor is US$366 million.  The transaction sale
price and terms have not been disclosed for confidentiality reasons.   The
individual members of the Consortium will each fund their pro rata share of
the purchase consideration.  Subject to the satisfaction of certain
conditions, completion is expected to take place within a month.
The CZN mine is an open-cut operation currently producing about 19 million
tonnes per annum of high-quality energy coal for export to international
markets.   CZN has a reserve life of more than 30 years at current
production rates. The mine lies 18 kilometres north of Carbones del Cerrejon
(CDC), an energy coal mine also owned equally by the Consortium members.
Significant operational synergies have been identified that can be released
through combining the operations of CZN and CDC.
President BHP Billiton Energy Coal Mike Oppenheimer said the transaction
represented another step in realising BHP Billiton's energy coal strategy.
"Extending our Colombian supply position, in conjunction with our partners,
is an important component of our strategy for servicing continued strong
growth in global markets for seaborne traded coal," he said.
"The Colombian operations are low-cost and have significant expansion
potential. Their geographically advantaged position opposite the United
States and Europe offers exciting prospects for growing our share of these
major energy coal markets and securing full value for our high quality
products."
"A key attraction of this acquisition is the combination potential with our
existing CDC business and the opportunity for BHP Billiton to become a more
active participant in energy coal in this region."
Further information can be found on our Internet site:
http://www.bhpbilliton.com
Australia
Dr Robert Porter, Investor Relations
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Mandy Frostick, Media Relations
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United States
Francis McAllister, Investor Relations
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mailto:Francis.R.McAllister@bhpbilliton.com
United Kingdom/South Africa
Michael Campbell, Investor & Media Relations
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mailto:Michael.J.Campbell@bhpbilliton.com
Ariane Gentil, Manager Communications
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mailto:Ariane.Gentil@bhpbilliton.com