Mining reported that BHP Billiton and Rio Tinto is looking at further cost cuts at its iron ore operations including extending a staff hiring freeze in place since September last year.

Mr Jimmy Wilson BHP’s iron ore president said that “Cooling markets provide an opportunity for BHP to increase production volumes using its existing equipment. We are going into a phase now where there's less demand as a percentage, not less demand as a magnitude, because there's still a lot of demand in the iron ore sector."

However, analysts such as Business Spectator columnist Mr Brett Cole believed that urging the company’s divisions to achieve greater efficiency is not enough to keep the company afloat. Until there is evidence that Chinese steel mills want more iron ore and coal, the miner’s stock is likely to suffer.

So far BHP has not laid off anyone from its iron ore workforce but last week the miner sold a 15% stake in a West Australian Jimblebar iron ore mine to Japan's Itochu Corporation and Mitsui for USD 1.5 billion.