Signs of cooling in Western Australia's mining boom
Updated
There are signs of a downturn in Western Australia's long running mining boom that was linked to China's high growth rate.
A stock analyst says the big resource company B-H-P Billiton may decide to retrench workers at its Kambalda nickel operations east of Perth, because one of its suppliers has suspended mining.
Eliza Borrello reports Consolidated Minerals supplies nickel ore to BHP.
Yesterday Consolidated Minerals confirmed around 180 staff and contractors at its Kambalda and Coobina mines would be retrenched by mid-December.
Analyst Peter Strachan says the suspension of operations at Consolidated Minerals' Kambalda nickel mine may affect the operation of B-H-P's Kambalda nickel concentrator and smelter.
He says "They would perhaps have to look at batch operating."
Strachen predicts a reduction in ore processing could result in B-H-P Billiton laying off up to a quarter of its Kambalda workforce.
