BHP to suspend iron ore output at Yarrie indefinitely

MELBOURNE, Feb 25 (Reuters) - Top global miner BHP Billiton

BHP.AX BLT.L said on Tuesday it will suspend production at its Yarrie iron ore mine indefinitely as part of its drive to cut costs.

"As an additional productivity measure for the iron ore business, we have made the decision to suspend production at our Yarrie operation until further notice," BHP's iron ore president, Jimmy Wilson, said in a statement.

BHP confirmed an earlier announcement by contractor Macmahon Holdings that BHP would take over running its Orebody 18, the last iron ore site still run by a contractor, by the end of June.

(Reporting by Sonali Paul; Editing by Paul Tait)

((Sonali.Paul@thomsonreuters.com)(+61 3 9286 1419)(Reuters Messaging: sonali.paul.thomsonreuters.com@reuters.net))

Keywords: BHPBILLITON IRONORE/YARRIE