Friday, February 7, 2014

BHP Billiton shuts Perseverance underground mine

SYDNEY--BHP Billiton Ltd. (BHP.AU) Tuesday said safety concerns meant it would no longer persevere with mining at the Perseverance underground operation in Western Australia state.

The world's biggest mining company suspended production at the mine, part of its Nickel West operations, after an earthquake in October. The company said it was unable to resume operations at the underground mine safely.

"Work to understand the broader implications of this decision on the Nickel West business has commenced and the impact on production will be reported" in the next quarterly report, BHP said in an emailed statement.

The company will continue to run its processing facilities near the town of Leinster and will continue to maintain the underground infrastructure at the Perseverance mine, it said.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

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