BHP Billiton Cuts 80 Jobs at Mozambique Smelter

Feb. 19 (Bloomberg) -- BHP Billiton Ltd., the world’s biggest mining company, cut 80 jobs at its Mozal aluminum smelter in Maputo, Mozambique, following a reduction in output caused by a power shortage in southern Africa. While production wasn’t cut in response to the downturn in the aluminum market, operations remain under review, BHP said in an e-mailed response to questions today. “The swift and dramatic market downturn has created very challenging market conditions,” Andrew Mackenzie, chief executive of BHP’s non-ferrous business, said in the e-mail. “Uncertainty in the short and medium-term outlook is real.” Aluminum may underperform other base, or industrial, metals for “several years,” Barclays Capital analyst Kevin Norrish said last week. Some 15 percent of global aluminum capacity has been shut, he said Feb. 10. “We will make the necessary adjustments to an operation where there is not a customer for the volume produced, or if the operation is cash negative and set to remain so,” Mackenzie said. Aluminum for delivery in three months on the London Metal Exchange has lost 65 percent in the past seven months. The Mozambican smelter posted a profit last year.