Topic: How To Invest

What do you think about BHP Billiton as a global resource investment?

Article Excerpt

A: BHP Billiton Ltd., $44.04, symbol BHP on New York (Shares outstanding: 1.7 billion; Market cap: $73.9 billion), is the world’s largest mining company. It produces copper, thermal coal, iron ore, nickel, manganese, metallurgical coal, oil and gas and uranium, as well as gold, zinc, lead, silver, diamonds, aluminum and alumina (a material for the smelting of aluminum metal; it also serves as the raw material for a range of ceramic products and as an active agent in chemical processing). BHP has nine main segments: iron ore, which generates 20% of BHP’s revenues, metallurgical coal, used for making steel (16%), petroleum (14%), thermal coal, used for power generation (15%), base metals (11%), aluminum (8%), manganese (6%), stainless steel (4%) and diamonds and titanium (2%). In November 2007, BHP launched a hostile bid for London-based Rio Tinto (symbol RTP on New York), but abandoned its $66-billion takeover due to European anti-competition regulations and a deteriorating economy. The deal would have required BHP to…