BHP Billiton Limited is issuing this announcement to fulfil disclosure
obligations arising from its secondary listing on the London Stock Exchange.
The text of this release is identical to that issued by BHP Billiton Plc
earlier.
26 November 2001
Number: 32/01
BHP BILLITON ANNOUNCES CLOSURE OF PALMIET FERROCHROME
The BHP Billiton Group (BHP Billiton) today announced the closure of the
Palmiet Ferrochrome operation, located in Krugersdorp South Africa, effective
immediately. Palmiet is operated by Samancor Chrome, which is 60 per cent
owned by BHP Billiton and 40 per cent owned by Anglo American.
Palmiet is a three-furnace operation with a total installed ferrochrome
capacity of 110,000 tons per annum. Today's announcement follows the closure
of the plant's two submerged arc furnaces (combined installed ferrochrome
capacity of 60,000 tons per annum) in September 2000 as a result of decreased
global demand for ferrochrome and associated low ferrochrome prices.
The remaining DC arc furnace was retained to service key customers with
specialty products and to continue to develop the DC technology. However,
the economies of scale for a single furnace operation have proven unviable,
despite significant restructuring and improvements at the plant.
Due to the availability of other specialist technology elsewhere within BHP
Billiton, the production and delivery of these specialty products currently
being produced at Palmiet will be continued from the Group's other furnaces
Samancor Chrome Chief Executive Chris Pointon said: 'A team has been tasked
with the closure of the site and has put in place initiatives to minimise the
impact on employees.
'Consultation is currently underway with the 88 employees whose jobs are
affected by the closure of Palmiet, and we will continue to service the
company's customer base from our other furnaces.
Our technological capability will enable us continue to meet customers' needs
for speciality products,' he said.
Samancor has indicated previously that ferrochrome prices are likely to remain
at relatively low levels for the foreseeable future, given the amount of new
and idled capacity in South Africa, including its own idled furnaces.
* * * *
Further information can be found on our Internet site: http://
www.bhpbilliton.com
Australia United Kingdom/South Africa
Dr. Robert Porter, Investor Relations Michael Campbell, Investor & Media
Relations
Tel: + 61 3 9609 3540 Mobile: +61 419 Tel: +27 11 376 3360 Mobile: +27
587 456 82 458 2587
email: Robert.Porter@bhpbilliton.com email:
Michael.J.Campbell@bhpbilliton.com
Mandy Frostick, Media Relations Ariane Gentil, Manager
Tel: +61 3 9609 4157 Mobile: +61 419 546 Communications
245 Tel: +44 20 7747 3977 Mobile: +
email: Mandy.J.Frostick@bhpbilliton.com 44 7881 518 715
email:
Ariane.Gentil@bhpbilliton.com
United States
Francis McAllister, Investor Relations
Tel: +1 713 961 8625 Mobile: +1 713 480
3699
email:
Francis.R.McAllister@bhpbilliton.com
BHP Billiton Limited ABN 49 004 028 077 BHP Billiton Plc
Registered in Australia Registration number
Registered Office: 600 Bourke Street Melbourne 3196209
Victoria 3000 Registered in England and
Telephone +61 3 9609 3333 Facsimile +61 3 9609 3015 Wales
Registered Office: 1-3
Strand London WC2N 5HA
United Kingdom
Telephone +44 20 7747 3800
Facsimile +44 20 7747 3900
The BHP Billiton Group is headquartered in Australia
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