The biggest mining company in the world called BHP Billiton Ltd. said on Wednesday that it plans to return ten billion dollars to its shareholders after its first-half net profit jumped seventy one and a half percent due to mounting iron ore and copper prices.
The mining giant based in Melbourne said in a statement that it was more than doubling its share buyback from the amount of $4.2 billion that the firm had announced in November. BHP further stated that it plans to square up the initiative by the end of 2011.
The net profit of the firm for the six months that got over on Dec. 31 was in the tune of10.52 billion dollars, up from 6.14 billion dollars one year earlier, it said in a statement. Revenue grew by thirty nine percent to hit $34.17 billion from $24.58 billion.
The company stated that its boost in profit resulted for strong demand from emerging markets, like China. It also happened due to tight supply for its important commodities, which pushed prices higher. Bad weather conditions in many producing countries, like Australia, which has witnessed record flooding in recent months has resulted in reduction of supplies of coal, iron ore and copper.
The company said it was upbeat but cautious about the short-term outlook for the global economy. They expect a deceleration in the growth rate of global commodity demand in 2011 but the economic environment still underpins a robust near term outlook for the company’s products as stated by the company.
BHP had announced of giving an interim dividend in the tune of forty six cents per share, which is more from forty two cents that was there in the prior corresponding period