The world's largest diversified mining group, BHP Billiton, has defied the global economic slowdown to unveil record profits.

The recently-merged group announced net profits of $608m (�464m) in the three months to September.

The figure was 3.2% higher than the combined profits of BHP and Billiton last year, although the results included new operations and acquisitions.

BHP Billiton's diversified portfolio has allowed the Anglo-Australian giant to ride out depressed commodity markets.

Mine closure

Analysts said the results were better than expected but BHP shares were flat at 290p in mid-morning trade.

BHP Billiton chief executive Paul Anderson said: "In the context of an increasingly difficult economic environment - with lower prices in many of our major commodity businesses including base metals, petroleum products, aluminium and stainless steel products - the group has delivered a stronger financial performance."

In a separate announcement, the company said it was closing the Rietspruit coal mine, near Johannesburg, in South Africa, with the loss of 728 jobs.

Although coal reserves are running low at the mine, the company said the decision to close it was an economic one, "related to the current softness in our main export energy coal markets."

Minimising fall-out

Rietspruit exports 4 million tonnes of coal annually to power stations in Europe.

BHP Billiton said it was working with trade unions on a "world class social plan" to minimise the impact of the closure on the local area.

The plan would involve developing non-mining jobs to sustain the economy of Rietspruit Village, it said.

The mine will cease production in May 2002.

In the City, BHP Billiton shares closed 1.5p lower at 288.75p.