Billiton buys BP’s stake in Selbaie

As part of a continuing effort to concentrate on its oil and gas business, BP Canada (TSE) recently agreed to sell its 61.11% stake in Les Mines Selbaie to partner Billiton Metals Canada.

Having signed a letter of intent with Billiton, BP is now preparing to off-load 409,000 hectares of prime exploration ground comprised of about 35 active projects in the Cordillera, B.C., Newfoundland and Abitibi regions. “Everything is up for sale on the mining side,” said BP Canada spokesman Ruth Ann Yardley, who declined to say what Billiton has agreed to pay for the asset.

Located 208 km north of Noranda in northern Quebec, the Selbaie mine consists of a 1,550-tonne-per-day underground operation and a 6,000-tonne-per-day open pit. Last year, BP Canada sold 36,741 tonnes zinc, 29,000 tonnes copper and 56 tonnes silver from Selbaie.

Still subject to regulatory approval, the transaction is expected to be completed by the third quarter of this year.

“We are making good progress,” said David Claydon, chairman and chief executive officer at BP Canada. The Calgary-based company recently sold its interest in the Hope Brook gold mine in Newfoundland to Royal Oak Mines (TSE), while The Texada Lime subsidiary in Langley, B.C., was sold in April to Chemical Lime Co. of Fort Worth, Tex.

“After the sale of Selbaie, the only mining assets we have remaining are various exploration properties across Canada and we are currently marketing those,” Claydon said.