THE world's biggest mining firm BHP Billiton - which has oil and gas operations in Liverpool Bay off the North Wales coast - says China's voracious appetite for raw materials has helped fuel a seventh successive year of record profits.

The Australian company said China remained a "key driver" of global commodity consumption amid strong demand from other emerging economies.

That has fuelled higher prices inmost of its major commodities and BHP expects prices "high relative to historic levels" in future.

Underlying profits rose 12% to pounds 8.2bn in the year to June 30. The company is currently engaged in a hostile pounds 80.3bn takeover bid for rival Rio Tinto, part owner of the Anglesey Aluminium smelter at Holyhead.

BHP expects global growth to slow as developed economies suffer in the months ahead, but said emerging markets would be buoyed by domestic investment and regional trade.

"The effects of current weaknesses in the developed economies on demand for our commodities should be minimal driven by ongoing strong demand from the emerging economies," the firm added.

BHP's profits boost came despite the firm dealing with an extra pounds 632m in costs, due to factors such as higher fuel and energy prices, labour shipping and freight costs.

It also said yesterday that it had broken production records for seven of its products including petroleum, copper and iron ore.

That - along with stronger average prices for most of its metals - helped the miner to a 16% increase in underlying earnings from its base metals operation even after the higher costs.

"Strong volume growth has allowed us to capture the benefits of very high prices," the group added.

The group, which is listed in London and Australia, has around 39,000 staff and 100 operations in 25 countries.

Its Liverpool Bay oil and gas fields employ 365 people, including staff at its UK petroleum office headquarters at Northop, Flintshire.

Its main Douglas platform, 15 miles off the North Wales coast, is the hub of the Irish Sea operations. The Lennox platform is off the Southport coast and the other fields in the complex are Hamilton, Hamilton North and Hamilton East.

BHP's chief executive Marius Kloppers said his proposed takeover of Rio Tinto made "more sense thanever" as the industry gearsup to meet global commodity needs. Rio Tinto's board unanimously rejected the approach as significantly undervaluing the business.

david.r.jones@dailypost.co.uk

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