BHP Says It Won't Cut Payout

   (FROM THE WALL STREET JOURNAL 11/20/15) 
   By Stephen Bell 

PERTH -- BHP Billiton Ltd. said it won't change its dividend policy until February at the earliest, despite shareholder concerns the mining company won't be able to sustain the payout given the slump in global commodity prices.

Speaking at an annual general meeting of the world's largest miner, BHP Chairman Jacques Nasser said shareholders have recently questioned its long-held pledge to avoid dividend cuts, following what he called "one of the most difficult" years in the company's 130-year history.

Earlier this month, a dam burst at an iron-ore mine operated by Samarco Minerao SA, BHP's Brazilian joint venture with local mining company Vale SA, leading to widespread flooding. BHP said Thursday the disaster had so far caused 11 deaths, with eight people still missing.

Mr. Nasser said BHP was proud of its decadelong policy of at least holding its dividendsteady. But, he said,"the one thing we never risk is the strength of the balance sheet through the cycle."

The comments were less robust than those made in August by BHP Chief Executive Andrew Mackenzie on whether the company would continue to stand by its dividend policy.

"Over my dead body sounds a little strong, but it is almost right," Mr. Mackenzie said then, referring to the possibility of a dividend cut.

Asked on Thursday whether BHP was now prepared to soften its stance,Mr. Mackenzie said, "you can expect us to say some things in February -- now isn't the time to comment further."

BHP, which is listed in both Australia and the U.K., rose 3% in Sydney and 2% in London.

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November 20, 2015 02:47 ET (07:47 GMT)

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