By Stephen Bell
PERTH, Australia--BHP Billiton Ltd. (BHP) is cutting jobs at
Port Hedland in Western Australia state where it ships most of its
iron ore, as it deepens a drive to make the business more
profitable at a time when iron-ore prices are sharply lower.
The layoffs add to the hundreds of jobs that BHP has cut in
recent months in iron-ore mining, which is its most profitable
business. In June, BHP made 170 positions redundant at its Mount
Whaleback mine in Western Australia, adding to 100 earlier job cuts
at the Perth headquarters of its iron-ore division.
Melbourne-based BHP declined to specify Wednesday how many jobs
would go at Port Hedland--the world's biggest iron ore port used by
BHP and rivals such as Fortescue Metals Group Ltd. (FMG.AU). A
report in the West Australian newspaper said 35 roles would
disappear.
"Some employees based in Port Hedland will be impacted by
changes to the structure and size of the workforce," a spokesperson
said. "We will discuss these changes directly with impacted
employees, who will be offered redeployment opportunities as and
where possible."
A slowdown in China's economy has weighed on prices of
commodities including iron ore and coal, hitting profits at mining
companies in Australia that were already struggling with high
wages. Iron ore, used to make steel, recently tumbled to a
five-year low near US$80 a ton.
Like many mining companies, BHP has closed pits and sold assets
to protect profits. Last month, the company reported a 23% increase
in net profit to US$13.83 billion for the year ended June, after
producing more iron ore and deepening company-wide cost cuts to
US$2.9 billion.
-Write to Stephen Bell at stephen.bell@wsj.com
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