BHP looking at more job cuts as iron ore prices drop

BHP Billiton is looking at more job cuts at its flagship Australian iron ore division as a way to reduce costs, as ore prices slump and pressure mounts to rein in spending.

The possibility of more cuts comes as thousands of jobs in Australia's once-booming mining sector disappear in response to cooling demand from China for imported industrial materials such as iron ore, coal and copper.

A BHP spokeswoman said it was not possible to put a number on how many jobs could be targeted and declined to confirm an Australian radio report that the figure could reach 3,000.

"Iron ore miners such as BHP are in the early stages of going through what the coal miners have been experiencing," said Gavin Wendt, a mining analyst for MineLife. "In effect, they are being asked to make do with less."

More than 12,000 coal-mining jobs have been lost in Australia since 2012, including those from BHP's mines, as the industry combats falling prices and stiff competition from countries such as Indonesia.

BHP, the world's biggest miner, employs about 16,000 people in its iron ore division.

Earlier this year, it said 170 jobs would go at its Whaleback mine in the Pilbara iron ore belt in Western Australia.