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BHP shuts Australian nickel mine Miner BHP to lay off 6,000
(about 2 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, says it plans to cut some 6,000 jobs worldwide to cope with plummeting demand for its products.
In a statement, it also said it would cut production at its Mount Keith nickel mine, also in Australia. The lay-offs amount to some 6% of its 101,000-strong workforce and follow similar cuts by chief rival Rio Tinto.
In addition, the firm said it would cut some 6,000 jobs worldwide to cope with plummeting demand for its products. It also said it will close its Ravensthorpe nickel mine in Australia due to poor profitability prospects.
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 Australia, 3,400 jobs will be lost, another 2,000 in Chile and 550 at the Pinto Valley copper mine in the US.
In a statement, it also said it would cut production at its Mount Keith nickel mine, also in Australia.
Viability
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 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.