BHP Billiton, the world's largest mining company says it is likely to cut 240 jobs and plans to suspend its Leinster nickel operation in Western Australia due to the weakening demand for its products brought on by the global economic slowdown and deteriorating nickel prices.

The company said this would result in about 20 workers and around 220 contractors losing their job.

"Mining at the Rocky's Reward open-pit mine at Leinster nickel operation will be safely wound down and placed on care and maintenance,'' the company said in a statement.
"BHP Billiton will consult with and seek to maximise internal redeployment opportunities for its employees.

"Where redeployment is not possible, BHP Billiton will provide full entitlements and support services to employees and their families, including outplacement services,'' the statement said.

The company said in a statement that "Leinster nickel underground mining operations and the processing plant will continue to operate as normal."

This follows closely to the company's January announcement of cutting 6,000 jobs from its global workforce and plans of closing down its Ravensthorpe Nickel mine. (See: Billiton cuts 6,000 jobs; closes mine)

Last year at the end of November, production adjustments announced by BHP Billiton was limited to Samarco (Brazil) and the Samancor manganese operations while in the Western Australia, iron ore and metallurgical coal operations were not affected.

In response to weak demand Samarco announced the temporary suspension of two of its three pellet plants to mid-January 2009 and continued the suspension until the end of March 2009.

After the frenzied demand for mineral raw materials by emerging Asian economic giants China, India, South Korea and Japan, the unprecedented boom in minerals seems to have become a thing of the past, as the global economic slowdown put Australian mining in the pits and the Australian government had to slash its mineral export earnings.

Now, more and more Chinese companies are taking 100 per cent control over Australian mining firms which are on the brink of bankruptcy with the Australian Foreign Investment Review Board (FIRB) deciding to review such deals which were finally okayed. (See: Australia puts Chinese firms' mining takeovers on hold)