Sale costs BHP $1b

SYDNEY: BHP Billiton will sell its Yabulu nickel refinery in Queensland for an undisclosed sum and will book US$675 million ($1.1 billion) in writedowns on the sale.

BHP Billiton will write down the carrying value of Yabulu by an estimated US$500 million and by a further US$175 million of unrecoverable tax benefits.

The writedowns will be reported as exceptional items in its 2008-09 results.

The refinery is being sold to companies wholly owned by Professor Clive Palmer and the sale is due to be finalised by the end of this month, BHP Billiton announced yesterday.

Palmer is the founder and executive chairman of Mineralogy Pty and has been a key figure in the Australian resources industry for more than 25 years.

The transaction was said to be supported by the state government, which had affirmed that the continued operation of the refinery was important to Queensland.

- AAP