BHP's Tasmania plant flags job losses

23 Feb 2012, 4:33 pm   -   Source: AAP
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BHP Billiton suspends production of its alloy plant in Tasmania. (AAP)

BHP Billiton suspends production of its alloy plant in Tasmania. (AAP)

The jobs of 330 workers at a BHP Billiton plant in northern Tasmanian could be under threat as the mining giant reviews its operations there.

BHP Billiton is the latest Australian company to flag possible job cuts because of the strength of the Australian dollar.

The global miner has decided to suspend work at its manganese alloy plant in northern Tasmania, in a move that could lead to 330 job losses.

BHP Billiton on Thursday said it would stop production temporarily at the 50-year-old TEMCO plant in George Town, near Launceston, from March.

The miner said the plant's competitiveness had been eroded by the strong Australian dollar and higher input costs, along with weak manganese alloy markets in Europe and low global prices.

BHP's Manganese Australia president Bryan Quinn said the miner would review the operation's long-term future over three months and consider all options.

During the three-month review, TEMCO's permanent staff would retain their jobs, Mr Quinn said.

However, the number of contractors may be reduced to those critical to essential running of the plant.

"If any decision is made to reduce the number of permanent employees following the review, we will explore all options in order to preserve jobs, including redeployment opportunities within BHP Billiton," Mr Quinn said in a statement.

BHP spokesman Antonios Papaspiropoulos said about 100 contractors may be affected by the closure.

Construction, Forestry, Mining and Energy Union (CFMEU) spokesman Chris Hinds said the closure could affect about 330 permanent staff and about 1,000 indirectly.

"When you look at the indirect people that will be affected, the number starts getting very high," he told AAP.

He said union delegates would meet TEMCO representatives on Wednesday to discuss what will happen to the plant's staff.

"I would imagine (TEMCO) has been told by BHP's head office some time yesterday and they've not had time to sit down and work out what the strategy will be in the future," Mr Hinds said.

TEMCO's Tasmanian facility converts ore sourced from the Northern Territory to alloys of manganese, which are used to make steel.

BHP's announcement follows a raft of recent announcements from Australian companies on plans to slash jobs amid difficult business conditions.

OneSteel plans to axe 430 jobs to help cut costs and Caltex Australia has flagged shutting its two domestic refineries, putting 800 jobs at risk.

Alcoa is considering shutting a Geelong aluminium smelter that employs 600 people.

BHP's shares closed 18 cents lower at $36.23.

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