On Wednesday, January 21, Anglo-Australian mining giant BHP Billiton announced that it will cut around 6,000 jobs, i.e. six percent of its global workforce of 101,000 employees, with majority of them in Australia, and will also close its Ravensthorpe nickel mine in Western Australia, due to the slump in demand for commodities and the deteriorating outlook in the global nickel market.
Accordingly, about 3,300 jobs will be cut in Australia with 1,100 jobs in coal production in Queensland, also 2,000 more in base metal jobs in Chile, and 550 stainless steel positions in Pinto Valley, US. Seventy percent of the reductions will come from the ranks of the company's contractors.
BHP chief financial officer Alex Vanselow said that the company is also cutting coking coal output by 10 to 15 percent, or by four to six million mt, in the second half of the year.
On the other hand, Mr. Vanselow added that there is no change in the company's iron ore target and that iron ore capacity will be increased to 155 million mt.