Hundreds of jobs at risk at BHP plant

Peter Ker February 23, 2012

About 330 jobs may be at risk at BHP Billiton’s Tasmanian manganese alloy plant as it undertakes a three-month review of the 50-year-old operation.

BHP today announced plans to suspend production at its Temco manganese alloy production facility in Tasmania, and conduct a review of the facility's future.

The suspension will be in force within three weeks at the facility, which BHP runs as a joint venture with Anglo American.

Contracting jobs appear certain to be lost in the short term while the results of the review will decide if the reductions cut deeper into full time workers.

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Construction, Forestry, Mining and Energy Union spokesman Chris Hinds said the closure could affect about 330 permanent staff and about 1000 indirectly.

‘‘When you look at the indirect people that will be affected, the number starts getting very high,’’ he said.

He said union delegates will 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.

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BHP spokesperson Antonios Papaspiropoulos said about 100 contractors may also be affected.

No decision was yet made on what would happen to Temco’s staff during the three-month review period or beyond, he said.

The facility, located near George Town, has been struggling under the high Australian dollar, high electricity costs and low prices.

The move came after BHP chief executive Marius Kloppers warned earlier this month that the company would not hesitate to cull underperforming assets.

Nickel and aluminum have been the other BHP divisions to struggle in recent times, and the company is restructuring it's nickel operations in WA.

bbutler@theage.com.au, with AAP