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abalone and bird nest

abalone and bird nest

abalone and bird nest

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iron ore mining kuantan news

BHP Billiton has slashed 170 iron ore jobs from its Mt Whaleback mine in the Pilbara as it continues to focus on cost and productivity gains.

The decision comes less than a week after BHP cut 100 people from its iron ore headquarters in Perth, however industry sources do not want the cuts blamed on the lagging price of the steelmaking ingredient.

As the mining phase moves from investment-led construction to a production focus, BHP has placed a renewed and aggressive emphasis on productivity and efficiency gains across its entire portfolio in an effort to simplify mining operations.

Sweating its Pilbara iron ore assets means BHP can get more ore on a ship at a better price, improving its bottom line. 

However, ‘rationalising’ also means the company is protecting itself against iron ore price volatility, which has seen the commodity fall 30 per cent in value this year to below $100 per tonne.

The miner said a productivity focus is “not new” and was aimed at “safely improving our business and ensuring we are a competitive, world-class operation".

"BHP Billiton iron ore regularly undertakes reviews to ensure that our business is operating as efficiently as possible," a spokesperson said.

"This includes reviewing the size and structure of our workforce to ensure it supports the delivery of our productivity agenda. We have been open with our employees about the work being done to improve productivity.

“We have been open with our employees about the work being done to improve productivity.

“In situations where employees are impacted we will undertake every effort to assist them throughout the process and to seek redeployment opportunities where possible.”

The CFMEU said BHP’s decision to cut jobs showed it was "putting its ruthless cost-cutting drive above any commitment to employees and regional communities".

CFMEU mining and energy WA secretary Gary Wood accused the company of putting shareholder returns ahead of workers’ interests.

“Mining should benefit the whole community not just shareholders; and BHP should be fighting to keep its people in work rather than throwing them on the scrapheap at the first opportunity,” Wood said.

“Forecasts show BHP could easily absorb fluctuations in the iron ore price, maintain employee numbers and remain profitable.”

Woods accused the company of keeping workers in the dark about impacts to their roles.

“Workers are only finding out whether they still have a job when they turn up for their shift.

“Workers will be turning up for their shifts all week without knowing whether they’re in the firing line.

“Many of those losing their jobs live locally and will have to uproot their families in search of a new job.

iron news

Steel reinforcement-bar futures in Shanghai fell today as iron ore prices retreated to a six-month low. Chinese economic growth data that was slightly higher than estimates limited the decline.

Rebar for May delivery on the Shanghai Futures Exchange fell as much as 0.7 percent to 3,446 yuan ($569) a metric ton, before trading at 3,459 yuan at 10:52 a.m. local time.

China’s economy grew 7.7 percent in the fourth quarter from a year earlier, the National Bureau of Statistics said today in Beijing. The median estimate in a Bloomberg News survey of 44 analysts was for a 7.6 percent gain.

“Better-than-expected GDP helped rebar pare some losses this morning, but lower production costs are still putting pressure on the market,” said Wu Zhili, an analyst at Shenhua Futures Co. in Shenzhen. “Iron ore and coal markets remain in a bear trend.”

Iron ore futures for May delivery on the Dalian Commodity Exchange retreated 0.6 percent to 871 yuan a ton.

The material for immediate delivery at the port of Tianjin tracked by The Steel Index fell by 0.8 percent to $127.30 a dry ton on Jan. 17, the lowest since July 15.

Rebar for immediate delivery tracked by Beijing Antaike Information Development Co. dropped 0.2 percent to 3,419 yuan a ton on Jan. 17, the lowest since July 15.

To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at frong2@bloomberg.net

To contact the editor responsible for this story: Brett Miller at bmiller30@bloomberg.net