BHP Billiton, the world's largest miner, said it would consolidate its stainless steel materials and aluminium divisions into a single business unit of larger scale, ready to benefit from future growth in emerging economies.
BHP said on Wednesday the new aluminium and nickel customer sector group, to include all its current nickel and aluminium assets, would be based in Perth, Australia, under the leadership of Glenn Kellow, currently president of stainless steel materials.
Nickel is used chiefly to make stainless steel.
Together, BHP's stainless steel materials and aluminium units made an underlying operating loss of $66 million at the half-year to the end of December, compared to BHP's underlying operating profit of $15.7 billion.
"Despite the current challenges, BHP Billiton is committed to aluminium and nickel as commodities that may benefit from later phases of economic development in the emerging economies," BHP's chief executive for aluminium, nickel and corporate development, Alberto Calderon, said.
"However, individually, Aluminium and Nickel are small divisions relative to the other businesses in BHP Billiton," he said, adding the new unit would provide "appropriate scale".
Aluminium producers have been squeezed by rising power and labour costs, and weak prices. Rival miner Rio Tinto announced last year it would sell 13 assets and has since taken a heavy writedown for its aluminium business.
Analysts have speculated over the future of BHP's own involvement in an increasingly tough industry which contributed just a fraction of the mining giant's profit. The miner said last week the aluminium business was still challenged by "underlying cost pressure and weaker prices".
Nickel has also been hit by margin pressure.