Mining titan BHP Billiton Ltd. (BHP) has the capacity to pursue further sizable acquisitions following its purchase of U.S. shale gas company Petrohawk Energy Corp. (HK) but is limited by targets that fit its investment criteria, the company's chief executive said Wednesday.

The "balance sheet has got capacity, but I think opportunity has been the limiting factor," Marius Kloppers told reporters after the Anglo-Australian mining company reported an 86% increase in full-year net profit.

He said that out of iron ore, coking coal, copper and oil--the four major contributors to its profit line--the latter two were products where there was more scope to execute sizable deals.

"Major acquisitions from a regulatory perspective in iron ore" and coking coal are difficult, Kloppers said.

BHP and Rio Tinto PLC (RIO) tried to create an iron ore joint venture by combining their operations in the Pilbara region of Western Australia, but the proposal was scuppered in October 2010 after both companies struggled to get the necessary regulatory approval.

Kloppers said there was more scope to execute major deals in oil, potash and base metals such as copper.

Iron ore, coking coal, copper and petroleum account for 90% of the company's profit, he said.

-By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328; alex.macdonald@dowjones.com

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