BHP plans £1bn cashback

MINING giant BHP Billiton is looking to return $2bn (£1.1bn) to shareholders after reporting bumper profits today on the back of the buoyant Chinese economy.

Soaring metal prices pushed net profits at the Anglo-Australian company up 82% to $3.4bn for the year to 30 June from $1.9bn the previous year. Revenue rose 42.5% to $24.9bn as iron-ore production increased to a record 84.2m tonnes. Aluminum output grew to 1.3m tonnes and nickel production to 82,000 tonnes, both also records.

BHP signed its biggest-ever contract with China in March, a $9bn deal to supply four steelmakers with 12m tonnes of iron ore a year for the next 25 years. Chief executive Chip Goodyear said that while China's economy had slowed from its double-digit growth rates 'demand for commodities remains strong'.