70 jobs axed to save Perth mine

PERTH - Up to 70 jobs have been slashed to help ensure the economic viability of a West Australian nickel mine, BHP Billiton says.

The mining giant announced up to 70 jobs would be cut at its Mt Keith operation, near Leinster, in the eastern Goldfields.

In January BHP laid off 300 workers at the same mine which coincided with the announcement it would close its Ravensthorpe nickel mine, in WA's south.

"BHP Billiton today announced changes to achieve a more competitive site organisation and help ensure the economic viability of its Mt Keith Operation," the company said.

"Regrettably, these changes are likely to result in up to 70 job losses and some work realignment."

BHP said it would consult its employees and seek to redeploy them to other sites.

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

All BHP operations were continually under review, the company said.

"We have consistently said that we would take appropriate action for any operation that is either cash negative and set to remain so, or if we cannot sell what we are producing."

Production rates at Mount Keith would be largely unchanged despite the job losses.

Nickel prices slumped early this year but have been steadily recovering.

In May BHP announced it would mothball its Rocky's Rewards open-pit nickel operation at Leinster.

It announced a round of redundancies affecting 240 people, blaming a deterioration in nickel prices for the closure of the mine. In January BHP flagged plans to sack about 6000 employees globally.

- AAP