BHP Billiton restarts operations at TEMCO facility

MELBOURNE, AUSTRALIA: On 23 February 2012, BHP Billiton announced a 90-day suspension of operations at its TEMCO manganese alloy facility in Tasmania, Australia, to review the economic viability of continuing operations. With that review now complete, BHP Billiton will restart operations at the TEMCO facility, with planning for a safe and full restart of the operation to commence immediately. The company’s intention is to have all four furnaces operating by the end of August 2012. A reduced organisational structure will be implemented for the restart. This will be achieved through natural attrition, an employment freeze and redeployment within BHP Billiton.

“The decision was taken to suspend production at TEMCO due to operating losses. Extensive stakeholder consultation and assessment of all options for TEMCO has been undertaken over the last three months. Thanks to the extensive investigation by TEMCO employees of these options, and the flexibility provided by several stakeholders, significant cost reduction opportunities have been identified, primarily in the areas of workforce efficiency, power supply flexibility, ore blending and freight optimisation. These changes should allow TEMCO to return to a globally competitive position,” said Bryan Quinn, President, Manganese Australia, BHP Billiton.

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