BHP to axe 380 jobs at SA mine
MINING giant BHP Billiton is set to axe 380 more jobs from its Olympic Dam operation in South Australia within weeks.
BHP said the decision was due to global factors in resources and to make the copper and uranium mine sustainable.
It comes as local fund managers question the dividend policies of BHP and Rio Tinto.
Pengana Capital’s Tim Schroeders and Fidelity Australian’s Paul Taylor said they do not believe the so-called progressive dividend policy was appropriate.
Under the policy the miners, at a minimum, maintain dividend payouts regardless of earnings. Investors increasingly argue the approach is not a good fit for resource companies facing wild swings in commodity prices. They also argue it limits a miner’s ability to make counter-cyclical growth investments, such as buying assets when prices are depressed. John Dagge and Daniel Wills