Job cuts likely at BHP¡¯s Worsley alumina plant in WA

BHP Billiton has flagged possible job cuts at its alumina operation in Western Australia following the completion of a major expansion last year.

The organisational structure at the Worsley operation is under review, including the number of workers needed to support production, a spokeswoman said today.

“We don’t intend to provide any detail about specific adjustments, but clearly there may be some impact on jobs in some areas,” Eleanor Nichols said, adding the review was continuing and wasn’t expected to disrupt the operation.

The move came after BHP earlier this month confirmed it was considering selling its Nickel West business in Western Australia, which would add to the roughly $US6.5 billion in assets sold over the past two years as the Melbourne-based mining company focuses on iron ore, coal, oil and gas, and copper.

Chief executive Andrew Mackenzie has pledged to continue simplifying BHP’s portfolio of operations.

The Worsley refinery’s capacity has increased to 4.6 million tonnes a year from 3.5 million in May 2008.

BHP’s share of output from the operation in the fiscal year through June 2013 was 26 per cent higher at 3.7 million tonnes, but BHP booked a $US1.6 billion impairment charge reflecting weak prices and the continued strength of the Australian dollar.

The refinery is 86 per cent owned by BHP, 10 per cent by Japan Alumina Associates and 4 per cent by Sojitz Alumina.

Bauxite, an ore, is refined into alumina, which in turn is smelted into aluminium metal which has a variety of uses in packaging, construction, transportation and household goods.

The company in January said it was considering closing its Bayside aluminium smelter in South Africa, which imports alumina from Worsley.

BHP also operates the nearby Hillside smelter, which sources alumina from Worsley and from Alcoa Inc.

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