UPDATE 1-BHP Billiton says cuts manganese production
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SYDNEY, Dec 3 (Reuters) - BHP Billiton Ltd/Plc (BHP.AX) (BLT.L) is temporarily cutting manganese production at its 60 percent owned Samancor Ltd operation due to weak market conditions, the company said on Wednesday.
The cuts are expected to reduce ore production by 21 percent and alloy production by 23 percent for FY 2009, BHP said in a statement.
The reduction will be balanced between the GEMCO operation in Australia and Hotazel in South Africa. Resources at both operations will shift to development and rebuilding product inventories, which are severely depleted.
The measures are expected to reduce ore production by 1.5 million tonnes in fiscal 2009, BHP said. Samancor's current total output capacity is 7 million tonnes of ore a year.
Falling metals prices amid the global economic slowdown have forced many miners worldwide to scale back production.
Last month, BHP told its Australian annual meeting that uncertainty in commodities markets would continue in the short term and it was ready to close loss-making operations.
The company had cited sliding metals prices and the threat of a global recession in its decision to walk away from a around $66 billion for rival Rio Tinto Ltd (RIO.AX) (RIO.L) last month.
BHP's 40 percent partner in Samancor is Anglo American Corp (AAL.L).
Earlier on Wednesday, BHP said it had approved a $245 million investment in an oil and gas project in Australia's North West Shelf. (Reporting by Jonathan Standing)
