BHP Billiton last night warned the Eurozone debt crisis could hamper its growth as it reported its first half-year profit drop in two years.
The world’s largest miner also said longer-term demand from China would slow as it posted a seven per cent fall in attributable profit before exceptionals to $9.94bn (£6.25bn) for the six months to 31 December.
It said a “disorderly unwinding” of European government debt is a key risk and that prices had fallen as concerns about the continent hit demand.
“We expect volatility in commodity markets to persist as the European sovereign debt crisis and general weakness in the manufacturing and construction sectors across key markets are expected to weigh on customer behaviour and sentiment.”
The mining juggernaut benefitted, however, from stronger growth in the US and a rebound in Japanese business.
The Anglo-Australian giant is sticking to its plan to splash $27bn on projects, as part of an $80bn spending plan over the five years to 2015, counting on the expansions to drive growth.
Iron ore made up half of the group’s earnings, with underlying profit from the core ingredient in steel rising 36 per cent to $7.9bn.
