BHP Billiton, the world’s largest mining company, may take $1.7 billion in one-time charges after closing a nickel mine in Australia and slashing 6,000 jobs as the global recession curbs demand for minerals.
The company will book a $1.2 billion pretax charge for the six months ended December 31st after shutting the Ravensthorpe mine and closing part of a refinery, Melbourne-based BHP said today in a statement.
It's also cutting coking coal output as much as 15 per cent, chief financial officer Alex Vanselow said on a call.
The future for metals demand, led by China, remains uncertain and BHP continues to review all its operations, Mr Vanselow said.
The company joins Rio Tinto Group, Mitsui Mining & Smelting and Anglo American in reducing output and cutting workers as metal prices, demand from factories and funding for projects collapse.
"It's a sign that we are in for a pretty sustained downturn," said Ken West, a partner at Perennial Investment Partners Ltd. in Melbourne who helps manage the equivalent of $1.9 billion.
"They are trying to realign their cost base."
Bloomberg