BHP Billiton Flags More Iron-Ore Job Cuts

PORT HEDLAND, Australia--BHP Billiton Ltd. (BHP), the world's largest mining company by market value, said more job cuts are possible amid a broader push to make its iron-ore operations in northwestern Australia more profitable.

Jimmy Wilson, president of BHP's iron-ore unit, said Wednesday any further layoffs "won't be in response to market prices" of the steelmaking ingredient, which have declined by around a third this year. He also said there isn't a targeted number of job cuts.

"It is very difficult for me to give precise answers as to what that all works out to," Mr. Wilson told reporters. "Our aspiration is to at least hold our headcount the same or reduce it while we are increasing our volumes."

BHP Billiton has already cut about 100 jobs at the Perth headquarters of its iron-ore division, a person familiar with the matter said last month. A further 170 job cuts were made at BHP's Mt Whaleback mine in the Pilbara, a remote region of Western Australia that accounts for roughly two in every five tons of iron ore traded by sea.

This year's fall in iron-ore prices was in line with BHP's expectations, due to the rapid addition of new supply from Australia, said Mike Henry, the company's marketing president. He added that prices are likely to continue to decline for several years.

Write to Rhiannon Hoyle at [e-mail]

Subscribe to WSJ: http://online.wsj.com?mod=djnwires