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| BHP shuts Australian nickel mine | BHP shuts Australian nickel mine |
| (about 4 hours later) | |
| The world's biggest mining group, BHP Billiton, has said it will close its Ravensthorpe nickel mine in Australia due to poor profitability prospects. | The world's biggest mining group, BHP Billiton, has said it will close its Ravensthorpe nickel mine in Australia due to poor profitability prospects. |
| In a statement, it also said it would cut production at its Mount Keith nickel mine, also in Australia. | In a statement, it also said it would cut production at its Mount Keith nickel mine, also in Australia. |
| In addition, the firm said it would cut some 6,000 jobs worldwide to cope with plummeting demand for its products. | |
| The price of nickel, used mainly in the production of stainless steel, has dropped because of the global slowdown. | The price of nickel, used mainly in the production of stainless steel, has dropped because of the global slowdown. |
| In Australia, 3,400 jobs will be lost, another 2,000 in Chile and 550 at the Pinto Valley copper mine in the US. | |
| In the statement, BHP Billiton said it would immediately start "the safe ramp down and indefinite suspension of the Ravensthorpe Nickel Operation". | In the statement, BHP Billiton said it would immediately start "the safe ramp down and indefinite suspension of the Ravensthorpe Nickel Operation". |
| "In addition, the rate of mining at the Mount Keith operation will be reduced in order to preserve its economic viability." | "In addition, the rate of mining at the Mount Keith operation will be reduced in order to preserve its economic viability." |
| However, the company said it would maintain nickel concentrate output. | However, the company said it would maintain nickel concentrate output. |
| "We fully understand the impact that today's announcement has on our employees, contractors and their families," Jimmy Wilson, BHP's stainless steel materials president, said. | "We fully understand the impact that today's announcement has on our employees, contractors and their families," Jimmy Wilson, BHP's stainless steel materials president, said. |
| "These decisions are never easy but are the consequence of our long held practice of continually reviewing all of our operations to ensure that they are competitive," he added. | "These decisions are never easy but are the consequence of our long held practice of continually reviewing all of our operations to ensure that they are competitive," he added. |
| The announced cuts - which represent 6% of BHP Billiton's global workforce - underscore a dramatic turnaround in the fortunes of mining companies as the global financial downturn is biting into the previously insatiable appetite for steel making, analysts say. | |
| The price of nickel has dropped from some $51,000 (£36,700) per metric ton in May 2007 to about $11,550 (£8,300) per metric ton. | The price of nickel has dropped from some $51,000 (£36,700) per metric ton in May 2007 to about $11,550 (£8,300) per metric ton. |