It is no laughing matter for people at risk of losing their jobs but the Metal Detective is often amused when big firms bring in high-powered management consultants to review their costs.

What is the simplest way to cut costs? Sack workers, of course.

MD would have been happy to provide BHP that detailed advice for the cost of a couple of beers and a meal at Black Toms.

He is certain that McKinsey and Co, which apparently recommended that BHP sack as much as 20% of its 16,000-strong Western Australian workforce to help match competitor Rio Tinto on Pilbara operating costs, charged a bit more than that.

The suggested size of the latest staff reduction raises an interesting public relations conundrum for BHP as the profit season nears.

BHP CEO Andrew Mackenzie re-affirmed earlier this year that the miner would consider capital management initiatives when its net debt had reduced to $US25 billion ($A26.5 billion).

At the February result, BHP’s net debt stood at $27 billion and – with iron ore and oil profits still rolling in – analysts predict the debt has now shrunk enough for Mackenzie to pull the trigger on a multi-billion dollar buyback.

The deal, which could be unveiled on August 19 at BHP’s full-year earnings result, would be welcomed by tax-sensitive investors and help prop up the company’s share price.

But what about BHP’s other “valued stakeholders”, ie employees?

It might not be a great look for management to sack 3000 iron ore workers in Perth and a few weeks later effectively use those payroll savings to buy BHP shares on market.

Yet, so determined is BHP to cut costs and lift productivity, it will probably happen anyway.

In fact, it would be a neat two-pronged attack on costs for Mackenzie to trumpet to the market: consolidating staff and share capital at the same time.

BHP Iron Ore chief Jimmy Wilson certainly won’t be entertaining questions on buybacks from the media tomorrow when he’s due to officiate at a Port Hedland ceremony to mark the shipment of BHP’s billionth tonne of iron ore to Japan.

But he will be quizzed closely on how many workers will head out the door in the next few weeks as a result of McKinsey’s recommendations.

The obvious question is where those thousands of ex-BHP workers will go to after spending part of their redundancy pay on a tropical island getaway?

Gina Rinehart’s Roy Hill is already full to the brim on construction jobs and is probably getting flooded with applications for the remaining operational roles.

Rio Tinto is also in consolidation mode, as is Fortescue Metals Group as it looks to knock off its debt quickly before iron ore prices dump any further.

Aquila Resources’ West Pilbara iron ore project is the Great White Hope for unemployed WA engineers, geologists, managers, caterers, etcetera.

Up until a few weeks ago, MD had regarded WPIOP as a long-dated option for the market, perhaps one that might see the light of day in the next up-cycle.

But Baosteel’s cash bid for Aquila may shorten the timescale, with the Chinese steel mill adamant it will push hard to get a quick start-up for the $A7.4 billion mine-rail-port venture.

There would be some nice symmetry if Baosteel’s takeover succeeds as expected.

Aquila chief Tony Poli, a $405 million cheque from Baosteel in his pocket, jets off to buy a Pacific atoll just vacated by dozens of holidaying ex-BHP workers racing home to post their resumes to Baosteel.

Failing that, the growing horde of middle managers formerly earning $300,000 a year might look to roughies such as Iron Ore Holdings’ Buckland project, which last week received a port lease for its mooted Cape Preston East trans-shipping facility.

The $744 million development, though not yet funded, has the potential to generate more than 300 permanent jobs, with the construction phase likely to require about 500 workers.

They are not BHP-like employment numbers but certainly look enticing in this tough market.

Patersons Securities has a speculative “buy” on IOH as it tries to lure partners and/or financiers to Buckland.

While the recent dip in prices may detract from the company’s near-term appeal, the Baosteel-Aurizon bid for Aquila suggests that security of iron ore supply is still at the forefront of most steelmakers’ thoughts, the broker reckons.

“We believe that the Buckland project is a solid asset that may be attractive to a mid-tier steelmaker looking to secure a source of iron ore,” it says.

Undoubtedly it also looks appealing to downsized mine workers looking for their next meal tickets.