BHP Billiton this morning revealed plans to sack 6000 employees and contractors around the globe - including 3400 in Australia - and close its disastrous Ravensthorpe nickel laterite project in Western Australia.

Ravensthorpe, which was officially opened by BHP's chairman, Don Argus, only last May, will be closed by June at the cost of 1800 jobs. Of those, 1450 are in WA and 350 are at the associated Yabulu nickel refinery in Queensland.

BHP Billiton shares tumbled in early trade, before closing 29 cents lower, or 1%, at $28.66.

The plans are likely to devastate regional communities like Hopetoun in WA, which had received an influx of new residents over the last few years due to the huge Ravensthorpe project.

BHP, the world's largest mining company, said its nickel division would sack another 300 workers at its Mt Keith nickel sulphide mine in a move to reduce mining costs at the large, low-grade open pit operation.