BHP suspends production at Tas alloy plant

February 23, 2012

Jobs could be under threat at BHP Billiton's Tasmanian manganese alloy plant as the mining giant undertakes a three-month review of the operation.

BHP on Thursday said it would temporarily suspend production at the TEMCO facility in George Town from early to mid-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 this time, there will be no change in the employment status of TEMCO-based permanent employees," Mr Quinn said in a statement.

"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."

The plant began operations in 1962.