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BIL
BIBLT
BIL - BHP Billiton - Changes To BHP Billiton`s Nickel Business
BHP Billiton Plc
Share code: BIL
ISIN: GB0000566504
CHANGES TO BHP BILLITON`S NICKEL BUSINESS
BHP Billiton today announced that it will immediately commence the safe ramp
down and indefinite suspension of the Ravensthorpe Nickel Operation (Australia).
As a consequence, Yabulu (Australia) will cease processing mixed nickel cobalt
hydroxide product from Ravensthorpe and will revert to processing ore only. The
Group plans to complete a future options study for Yabulu during the first half
of calendar year 2009.
The decisions announced today are largely the result of the diminished prospects
for profitability of Ravensthorpe and Yabulu in the current environment,
significant and continuing deterioration in the outlook for the nickel market,
and the projected level of capital expenditure required in order to achieve and
sustain projected production volumes at Ravensthorpe. As a result, the total
workforce at these operations and associated Perth-based functional areas will
be reduced by approximately 800 employees and 1,000 contractors by June 2009.
In addition, the rate of mining at the Mount Keith (Australia) operation will be
reduced in order to preserve its economic viability. The overall rate of
concentrate production at Mount Keith will remain largely unchanged. Improved
processing technology will enable the operation to source and process more ore
from existing stockpiles. The Mount Keith workforce will be reduced by
approximately 100 employees and 200 contractors by end February 2009.
All affected employees will be supported through the implementation of these
changes and BHP Billiton will work with suppliers, customers and the local
communities to minimise the impact of these decisions.
Stainless Steel Materials President, Jimmy Wilson, said:
"We fully understand the impact that today`s announcement has on our employees,
contractors and their families. These decisions are never easy but are the
consequence of our long held practice of continually reviewing all of our
operations to ensure that they are competitive. We will continue our usual
practice of maximising internal re-deployment opportunities and, where these are
not possible, will provide full entitlements and support services to employees
and their families, including outplacement services.
"We also recognise that the local communities will have concerns about how this
will impact them. We will honour any agreements we have made and continue to
keep the communities updated throughout this process."
These decisions also require a downward revision to the carrying values of the
Ravensthorpe and Yabulu operations. Accordingly, an additional pre-tax
impairment charge of approximately US$1.2 billion will be reflected in the
Group`s results for the half year ended 31 December 2008. It is also likely
that an estimated pre-tax charge of approximately US$400 million will be
recognised in the second half of the 2009 financial year. These two charges will
be recognised as exceptional items.
Further information on BHP Billiton can be found on our Internet site:
www.bhpbilliton.com
Australia United Kingdom & South Africa
Samantha Evans, Media Andre Liebenberg, Investor
Relations Relations
Tel: +61 3 9609 2898 Mobile: Tel: +44 20 7802 4131
+61 400 693 915 Mobile: +44 7920 236 974
email: email:
Samantha.Evans@bhpbilliton.co Andre.Liebenberg@bhpbilliton.
m com
Peter Ogden, Media Relations Illtud Harri, Media Relations
Tel: +61 3 9609 2812 Mobile: Tel: +44 20 7802 4195
+61 428 599 190 Mobile: +44 7920 237 246
Email: email:
Peter.Ogden@bhpbilliton.com Illtud.Harri@bhpbilliton.com
Kelly Quirke, Media Relations United States
Tel: +61 3 9609 2896 Mobile: Scott Espenshade, Investor
+61 429 966 312 Relations
Email: Tel: +1 713 599 6431
Kelly.Quirke@bhpbilliton.com Mobile: +1 713 208 8565
email:
Scott.Espenshade@bhpbilliton.
com
Leng Lau, Investor Relations
Tel: +61 3 9609 4202 Mobile: Ruban Yogarajah, Media
+61 403 533 706 Relations
email: Tel: US +1 713 966 2907 or UK
Leng.Y.Lau@bhpbilliton.com +44 20 7802 4033Mobile: UK
+44 7827 082 022
email:
Ruban.Yogarajah@bhpbilliton.c
om
BHP Billiton Limited ABN 49 BHP Billiton Plc Registration
004 028 077 number 3196209
Registered in Australia Registered in England and
Registered Office: 180 Wales
Lonsdale Street Registered Office: Neathouse
Melbourne Victoria 3000 Place
Australia London SW1V 1BH United Kingdo
Tel +61 1300 55 4757 Fax +61 Tel +44 20 7802 4000 Fax +44
3 9609 3015 20 7802 4111
A member of the BHP Billiton group which is headquartered in
Australia
Date: 21/01/2009 07:07:01 Produced by the JSE SENS Department.
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