BHP axes 85 jobs at mine

TOUGHER times for mining companies forced BHP Billiton to axe the jobs of 85 workers at its Olympic Dam mine yesterday. The jobs are in addition to 200 positions the company is already cutting from the team planning the expansion of the copper, uranium and gold mine. "Copper prices have fallen more than 60 per cent," a BHP spokesman said. "We've had to look at ways to reduce costs in that environment." BHP Billiton in January flagged some 6000 job cuts from its worldwide workforce -- but Olympic Dam workers did not know who would be included in the cuts until yesterday. The jobs have been lost from the existing mining and processing work rather than those engaged in the Olympic Dam expansion project. The workers were told their jobs were terminated from yesterday, with redundancy packages negotiated case by case. BHP Billiton will still employ about 3000 people at Olympic Dam. There would be no change to existing production targets, the spokesman said. In January, it announced 200 workers were being made redundant because planning for the Olympic Dam expansion was largely complete and the project was in a waiting phase while these plans were being assessed. The company also announced that 50 workers from Olympic Dam will be moved to Adelaide as part of a restructure. Adelaide will become the headquarters of the company's Uranium Australia section with the 50 workers involved in office functions such as finance and human resources. The SA Chamber of Mines and Energy said the job cuts were the unfortunate consequence of world markets. "The fall in commodity prices -- and copper prices in particular -- has affected mining companies worldwide and unfortunately, BHP Billiton is no exception," the chamber's director for industry marketing, Anne Walker, said. BHP shares closed up 0.55 per cent at $29.28 yesterday.