South32 cuts 600 jobs as it faces $1.7bn write down

South32 has halved in value in its first nine months after being spun out of BHP Billiton
South32 has halved in value in its first nine months after being spun out of BHP Billiton
AFP/GETTY IMAGES

South32, which was spun out of BHP Billiton, is cutting more than 600 jobs and preparing for a $1.7 billion write-down.

The mining group, which mainly operates in Australia and South Africa, has endured a brutal inauguration as an independent company since it was floated on the London, Sydney and Johannesburg markets last year.

It took its first solo steps into a market where the prices of the manganese, coal and nickel it produces were plunging. The company has halved in value in its first nine months, leaving it worth £3 billion, or about a third of the valuation mooted in the City a year ago.

The company said it was significantly cutting the output of its manganese joint venture in response to lower prices.