BHP Billiton might cut jobs after scrapped expansion plan

BHP-BillitonWorld's largest mining company by market value, BHP Billiton might transfer or lay off as many as 140 employees in South Australia following its decision to cancel plans to expand operations at its Olympic Dam copper and uranium mine in the region.

The Melbourne-based had delayed and postponed new investment plans until the middle of next year citing lower prices of commodities and higher prices of materials. The company has announced that it will cut 140 jobs at the Olympic Dam project following the decision to scrap $ 20 billion expansion plans of the copper and uranium project.

The company said in a statement, “Following our announcement on the Olympic Dam project we have determined that the new project team to investigate an alternative less capital-intensive design of the open-pit expansion will comprise approximately 50 positions. Currently there are approximately 190 project team members, mostly within the Adelaide office.”

Meanwhile, BHP Billiton has said that it will sell its Yeelirrie uranium deposit that is situated in Western Australia for $ 430 million to Cameco Corp of Canada. The sale announcement came after BHP Billiton said that it has decided to scrap the project. Chief executive Marius Kloppers has indicated that the deposits were too small in quantity for the company. WA Premier Colin Barnett had asked BHP Billiton to scrap the project because it is too small for its portfolio.




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