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BIL
BIBLT
BIL - BHP Billiton Plc - Samancor Manganese Production Reduction
BHP Billiton Plc
Share code: BIL
ISIN: GB0000566504
3 December 2008
Number 43/08
SAMANCOR MANGANESE PRODUCTION REDUCTION
BHP Billiton today announced that it is temporarily cutting manganese production
at its 60 per cent owned Samancor (Pty) Ltd operation due to weak market
conditions. The cuts are expected to reduce ore production by 21 per cent and
alloy production by 23 per cent for FY2009.
The reduction in manganese ore output is expected to be balanced between GEMCO
(Australia) and Hotazel (South Africa). Resources at both these operations will
shift to development and re-building product inventories, which are severely
depleted. The reductions are expected to reduce ore production by 1.5 million
tonnes in FY2009. Samancor`s current total output capacity is 7.0 million
tonnes of ore per annum.
In relation to alloy, furnace rebuilds will be brought forward at TEMCO
(Australia) and Metalloys (South Africa). In addition, certain of these
furnaces are not expected to restart until market conditions improve. We expect
to reduce alloy production by 170,000 tonnes in FY2009, from a current output
capacity of 725,000 tonnes per year.
BHP Billiton Chief Executive, Ferrous and Coal, Marcus Randolph, said: "We said
on 22 November that global market conditions were proving challenging for the
steel industry and its raw materials providers. Manganese ore and alloy are
entirely dependent on the carbon steel industry and are therefore directly
impacted by the current weak steel markets.
"We will continue to monitor the situation and when we see a recovery, given we
are bringing forward essential major maintenance projects, we expect to be well
placed to restart our full production alloy capacity. In ore, the development
activities and rebuilding of depleted stocks will also allow us to react quickly
to any recovery in the market."
BHP Billiton`s 40 per cent partner in Samancor is Anglo American Corporation.
Further information on BHP Billiton can be found on our Internet site:
www.bhpbilliton.com
Australia United Kingdom & South Africa
Samantha Evans, Media Relations Andre Liebenberg, Investor Relations
Tel: +61 3 9609 2898 Mobile: +61 400 Tel: +44 20 7802 4131 Mobile: +44
693 915 7920 236 974
email: Samantha.Evans@bhpbilliton.com email:
Andre.Liebenberg@bhpbilliton.com
Peter Ogden, Media Relations Illtud Harri, Media Relations
Tel: +61 3 9609 2812 Mobile: +61 428 Tel: +44 20 7802 4195 Mobile: +44
599 190 7920 237 246
Email: Peter.Ogden@bhpbilliton.com email: Illtud.Harri@bhpbilliton.com
Leng Lau, Investor Relations United States
Tel: +61 3 9609 4202 Mobile: +61 403 Scott Espenshade, Investor Relations
533 706 Tel: +1 713 599 6431 Mobile: +1 713
email: Leng.Y.Lau@bhpbilliton.com 208 8565
email:
Scott.Espenshade@bhpbilliton.com
Ruban Yogarajah, Media Relations
Tel: US +1 713 966 2907 or UK +44 20
7802 4033
Mobile: UK +44 7827 082 022
email: Ruban.Yogarajah@bhpbilliton.com
BHP Billiton Limited ABN 49 BHP Billiton Plc Registration
004 028 077 number 3196209
Registered in Australia Registered in England and Wales
Registered Office: 180 Registered Office: Neathouse
Lonsdale Street Melbourne Place London SW1V 1BH United
Victoria 3000 Kingdom
Telephone +61 1300 554 757 Telephone +44 20 7802 4000
Facsimile +61 3 9609 3015 Facsimile +44 20 7802 4111
The BHP Billiton Group is headquartered in Australia
Date: 03/12/2008 07:40:02 Produced by the JSE SENS Department.
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