By Stephen Bell 
 

PERTH, Australia--BHP Billiton Ltd. (BHP) is cutting jobs at Port Hedland in Western Australia state where it ships most of its iron ore, as it deepens a drive to make the business more profitable at a time when iron-ore prices are sharply lower.

The layoffs add to the hundreds of jobs that BHP has cut in recent months in iron-ore mining, which is its most profitable business. In June, BHP made 170 positions redundant at its Mount Whaleback mine in Western Australia, adding to 100 earlier job cuts at the Perth headquarters of its iron-ore division.

Melbourne-based BHP declined to specify Wednesday how many jobs would go at Port Hedland--the world's biggest iron ore port used by BHP and rivals such as Fortescue Metals Group Ltd. (FMG.AU). A report in the West Australian newspaper said 35 roles would disappear.

"Some employees based in Port Hedland will be impacted by changes to the structure and size of the workforce," a spokesperson said. "We will discuss these changes directly with impacted employees, who will be offered redeployment opportunities as and where possible."

A slowdown in China's economy has weighed on prices of commodities including iron ore and coal, hitting profits at mining companies in Australia that were already struggling with high wages. Iron ore, used to make steel, recently tumbled to a five-year low near US$80 a ton.

Like many mining companies, BHP has closed pits and sold assets to protect profits. Last month, the company reported a 23% increase in net profit to US$13.83 billion for the year ended June, after producing more iron ore and deepening company-wide cost cuts to US$2.9 billion.

-Write to Stephen Bell at stephen.bell@wsj.com

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