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 rhiannon.hoyle@wsj.com
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