BHP Billiton-Mitsubishi Venture to Cut 700 Jobs

SYDNEY-- BHP Billiton Ltd. and Mitsubishi Corp. will cut around 700 jobs from their joint Australian coal-mining operations, in a continued effort to cut costs as prices for the fuel stagnate near multiyear lows.

The companies--which run a coal business jointly under the name BHP Billiton Mitsubishi Alliance, or BMA--said they had completed a review of their mines in central Queensland state and "found that operational workforce numbers were greater than required to safely and efficiently operate the business."

The BMA joint venture is the world's biggest exporter of steelmaking coal.

"The company needed to redouble its efforts to improve the cost base of the business to ensure that it remains competitive across all cycles," BMA asset president Lucas Dow said.

Coking coal prices have been trading near their lowest level since 2009 as rising supplies of the energy commodity, used in steelmaking, have outpaced demand.

BHP Billiton executives last year said they would look to work existing operations harder, to drive margins and returns higher, as the world's largest mining company ruled out a further expansion of its coal business.

BHP and other Australian miners invested billions of dollars in new projects over the past decade against a backdrop of rising prices for minerals, particularly coal and iron ore, which are abundant in Australia and saw sharp demand growth in China. But a slowdown in the pace of demand and softening in prices have prompted many miners to curtail expansion plans and cut jobs at existing projects.

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