By: Esmarie Swanepoel
9th October 2012
PERTH (Mining Weekly) – Jobs could be on the line at mining giant BHP Billiton’s iron-ore operations, as the company continued to look at ways of reducing overheads and operating costs in response to weaker commodity prices.
A company spokesperson confirmed employee redeployment plans to Mining Weekly Online, but was hesitant to provide any detail on specific adjustments.
“…clearly, there may be some impact on jobs in some areas,” the spokesperson said.
BHP’s iron-ore division, which is based out of Australia’s Pilbara region, delivered more than $22-billion in revenue for the year ended June, with the operations delivering a twelfth consecutive production record.
However, as market fundamentals declined, the miner announced that it would cut back spending on its capital projects in the division, first delaying a decision on its multibillion-dollar outer harbour project, and in September cutting down between A$75-million and A$80-million on capital for the inner harbour project.
The reduction in scope at the inner harbour related only to work at Nelson Point.
The prospect of job cuts in iron-ore comes less than two months after BHP Billiton also warned of job losses at its Australian coal mines.
The miner has reportedly shelved plans to build a $3-billion coking coal mine in Queensland as part of its spending cuts, while ceasing production at its Gregory opencut mine, also in Queensland.
Edited by: Mariaan Webb
9th October 2012
PERTH (Mining Weekly) – Jobs could be on the line at mining giant BHP Billiton’s iron-ore operations, as the company continued to look at ways of reducing overheads and operating costs in response to weaker commodity prices.
A company spokesperson confirmed employee redeployment plans to Mining Weekly Online, but was hesitant to provide any detail on specific adjustments.
“…clearly, there may be some impact on jobs in some areas,” the spokesperson said.
BHP’s iron-ore division, which is based out of Australia’s Pilbara region, delivered more than $22-billion in revenue for the year ended June, with the operations delivering a twelfth consecutive production record.
However, as market fundamentals declined, the miner announced that it would cut back spending on its capital projects in the division, first delaying a decision on its multibillion-dollar outer harbour project, and in September cutting down between A$75-million and A$80-million on capital for the inner harbour project.
The reduction in scope at the inner harbour related only to work at Nelson Point.
The prospect of job cuts in iron-ore comes less than two months after BHP Billiton also warned of job losses at its Australian coal mines.
The miner has reportedly shelved plans to build a $3-billion coking coal mine in Queensland as part of its spending cuts, while ceasing production at its Gregory opencut mine, also in Queensland.
Edited by: Mariaan Webb
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