BHP to spin off South32 with modest debt

Melbourne - BHP Billiton said a proposed $13bn spinoff of South32 would give the world's biggest miner a strong chance to ride out tough conditions in commodity markets and was a more attractive option than an asset sale.

BHP released documents this week setting out the conditions for the split of its core iron ore, petroleum, and copper and coal businesses from its unloved assets which will form South32, ahead of a planned listing in May.

The plan is part of BHP's efforts to reduce costs and simplify its business in response to the commodity price downturn that has hit big mining and energy companies.