BHP suspends Australia nickel mine after small earthquake

* Minor earthquake to cut BHP nickel output

* BHP suspends underground Perseverance mine in Australia

* Says other Nickel West divisions running normally

SYDNEY, Nov 13 (Reuters) - BHP Billiton (NYSE: BBL - news) will post lower nickel production in the current quarter after a minor earthquake closed down operations at its Perseverance mine in western Australia.

Workers in the underground mine escaped injury from the magnitude 3.7 earthquake on Oct (KOSDAQ: 039200.KQ - news) . 31 by taking refuge in a specially designed chamber, where they had access to water and communications. They were brought safely to the surface later in the day, BHP said.

Operations at the mine, located about 500 kms (300 miles) from Perth, have been halted while experts assess the impact on operations, the company said on Wednesday.

The company's nearby Mt Keith, Cliffs and Kambalda mines and its Kalgoorlie smelter and Kwinana refinery were not affected by the quake and were operating as normal, BHP said.

Production from the Kwinana nickel refinery on the western Australian coast would be maintained in the short term, but the suspension at Perseverance was likely to reduce total saleable nickel output in the December 2013 quarter, it said.

BHP said a small crew was working underground to re-establish access, carry out inspections, assessments and maintenance of essential services.

Other staff had been notified that they are not required at work until further notice, BHP said.

BHP's nickel production increased by 9 percent year-on-year in the September 2013 quarter to 40,000 tonnes, reflecting a strong operating performance by its Nickel West division, the company said on Oct 22.

BHP settled 1.2 percent lower in line with losses in the wider market.