Japanese oil refiner Eneos Holdings Inc. is considering spinning off its metals unit, JX Nippon Mining & Metals Corp., as the company increases its focus on renewable energy, according to a Nikkei report.
Eneos will also assess the unit’s listing, Nikkei reported on Wednesday, without citing anyone. The company is expected to retain a stake after the spin-off and has yet to decide how much it will sell, according to the report.
The company will include the proposal in its mid-term management strategy to be announced on Thursday, according to Nikkei. An Eneos spokesman said the company was not the source of the report.
Japan’s top refiner is mulling the spin-off because there is little overlap between the metals unit and its core business, the Nikkei said. Eneos is focusing on accelerating the transition to renewables and hydrogen as demand for oil is expected to ease, he said.
JX Nippon Mining mainly focuses on non-ferrous metals, including copper and rare metals. The company has a stake in the Caserones copper mine in Chile. The Canadian Lundin Mining Corp. recently said it would buy a 51% stake in mine operator SCM Minera Lumina Copper Chile from JX Nippon Mining.
–With the assistance of Stephen Stapczynski.
