Rebuilds Oring

BHP Manganese production Bars

The conditions of weakness in the steel industry have forced the world's largest miner De BHP Billiton, to temporarily reduce production of Samancor manganese operation, which should reduce the production of ore and alloy 21% and 23% respectively for 2009.

BHP Billiton CEO ferrous and coal Marcus Randolph said the world market conditions were a challenge steel industry and its suppliers of raw materials.

"Manganese ore and alloys are totally dependent on carbon steel and are therefore directly affected by steel markets low-power, "he said.

"We continue to monitor where and when we see a recovery, since we are ahead of the key projects for major maintenance, we hope to be well suited to support our full production capacity of the alloy.

"In ore, business development and rebuilding depleted stocks, we can react to market recovery. "

The reduction of manganese ore production should be balanced between Groote Eylandt Mining Company (GEMCO) Hotazel resources for both the operations moved to the reconstruction and development of product inventories.

Mineral production in Samancor, which has a total production capacity of 7 million tonnes of ore per year should drop to 1.5Mt in fiscal 2009 due to these reductions.

For alloy furnace will be rebuilt and subject to TEMCO Metalloys kilns with some not expected to resume production until market conditions improvement.

Alloy production should be reduced by 170,000 tons in 2009 from a current production capacity of 725,000 tons per year.

BHP owns 60% of the transaction Samancor, while Anglo American Corporation owns the rest.

The news comes after Xstrata made further reductions in the production of ferrochrome in South Africa, bringing the total capacity of 906,000 t in the suspension or 52% of annual capacity of operation.

Another five furnaces were suspended, or around 406,000 tonnes of annual production capacity of ferrochrome and production cut ferrochromium in 2008 to 50,000 t. new

Shares of BHP earned $ 1.41 to 28.44 am.

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