citi presentation, page-9

RIV fits BHP's criteria exactly. I def sense RIV could be a target. Maybe JV with VALE??

BHP Billiton CEO open to more joint ventures
By Belinda Tasker in London

AAP

October 30, 2009 07:41am

BHP Billiton has flagged its interest in signing up to more joint ventures similar to its 50:50 iron ore project with resources rival Rio Tinto.
Chief executive Marius Kloppers told shareholders at BHP's annual general meeting in London that the world's biggest miner was more likely to focus on major joint ventures rather than snap up the operations of smaller companies.
"We've obviously looked at other things from time to time and continue to do that," he said.

"I do, however, want to point out that our strategy basically constrains us to large, low-cost, long-life, expandable assets that are export oriented.

"And these assets only come to market very, very seldom.

"So I guess ... you shouldn't expect that we will do transactions with smaller companies with smaller assets and so on.

"But from time to time we are going to do things like the Rio Tinto jv (joint venture)."

BHP and Rio announced in June a $US116 billion iron ore tie-up which will oversee the widespread iron ore assets of both companies in Western Australia's the Pilbara region.

Under the joint venture, BHP and Rio will combine their iron ore mines, share haulage and port capacity while maintaining separate marketing groups.
While the deal is awaiting regulatory approval, Mr Kloppers reiterated his hopes of completing it in this calendar year.

BHP would make one "bullet payment" to Rio to equalise the shareholding in the joint venture at 50:50, he added.

"Rio Tinto and ourselves are very keen to complete this venture," he said.

"We are now negotiating binding documentation which we had previously indicated we hope to complete by December.

"Before the joint venture can take effect there are a number of regulator conditions that we have to have approved.

"Once those pre-conditions are approved sometime in early 2010, a little difficult to predict the timing, we will complete this venture."

Earlier, shareholders heard how BHP intended to invest about $US10 billion ($A11.13 billion) in capital and exploration expenditure in 2009/2010.

BHP was also "strongly positioned" to invest in growth and "opportunistic mergers and acquisitions", outgoing chairman Don Argus said.

Mr Kloppers said several projects which had been put on hold last year, while BHP pursued its ultimately unsuccessful takeover of Rio Tinto, remained on the agenda.

"There are many opportunities in our base metals, potash, uranium, energy coal, coking coal, iron ore, petroleum and the other businesses," he said.

"I expect over the next six to 12 months we are going to approve more projects that will again boost that portfolio of spending."