Here is a “personal perspective” on the BHP Billiton bid for Rio Tinto. This perspective comes from one of my regular (non-public) blog commenters.
On a personal note, watching the video cast by Marius Kloppers, brought back the pain of watching BHP shut down and dismantle the San Manuel mine and smelter, one of the U.S.’s premier copper producers and where I first worked in the mining industry, because it didn’t fit into their global business plan.
San Manuel would be highly profitable today if it were operating. I can’t help feel that a smaller company with a more local perspective would have figured out a way to keep the facility intact during the down time of 2000, etc.
This link takes you to an interesting article I found regarding BHP’s shutdown of the San Manuel Mine in 1999.
I think it illustrates the meaning of the term “highgrading” as used in the recent BHP Billiton webcast. I was surprised to hear them use that term. It probably appeals to investors, but it has a definite negative connotation to any responsible mine operator.
