BHP Billiton Vows to Focus on Investor Returns

By Rhiannon Hoyle 

SYDNEY-- BHP Billiton Ltd. Thursday assured investors that it remains focused on boosting capital returns, moving to dispel fears that falling commodity prices would push out a hoped-for share buyback.

It comes as the world's biggest miner by market value moves forward with a spin-off of businesses including aluminum and manganese into a new company that could be worth as much as US$18 billion.

"Everything we are doing, including productivity accelerated by the demerger, is aimed at increasing cash returns to you, our shareholders," Chief Executive Andrew Mackenzie told investors at the company's Australian annual general meeting in Adelaide.

BHP disappointed investors in August when it failed to outline any plans to buy back stock, and UBS recently said such is move was now unlikely until at least the middle of next year, after prices of the commodities BHP produces fell sharply. The value of iron ore, which accounts for around half the company's earnings, has fallen by almost 50% this year.

Global commodity markets have been roiled by a rising U.S. dollar and concern that China's economy is cooling faster than anticipated.

The world's No. 2 economy has been losing momentum, with growth in investment, factory production, exports and retail sales all having slowed in October. The economy grew by 7.3% year-over-year in the third quarter, its slowest pace in more than five years.

There have been other clouds on the global economic horizon. Japan has slipped into recession, and U.S. Federal Reserve officials have raised concern the U.S. recovery may be hampered by tumult in the global economy.

"Events this year have been a reminder of how unpredictable and volatile politics and economics can be," Chairman Jac Nasser said.

Still, he said he expected China, together with other emerging markets, to remain a major driver of global growth and underpin increased demand for natural resources.

Write to Rhiannon Hoyle at [e-mail]

Access Investor Kit for BHP Billiton Plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=GB0000566504

Access Investor Kit for BHP Billiton Plc

Visit http://www.companyspotlight.com/partner?cp_code=P479&isin=US05545E2090

Subscribe to WSJ: http://online.wsj.com?mod=djnwires