BHP mines bauxite in Australia

The group, one of the firm's bidding for the Drax power station near Selby in Yorkshire, said stronger prices for oil, iron ore and metals helped profits jump to $545m (�340.6m) up from $313m in the same period last year.

Analysts had forecast profits for the April to June period of $438.9 million before exceptional items.

The rise saw BHP's annual profit before exceptional items increase to $1.92bn, up from $1.866 billion a year earlier, topping analyst expectations of $1.814bn.

The firm added that despite fears that the Severe Acute Respiratory Syndrome outbreak would lead to a slowdown, Asian economies had demonstrated growth, driven by strong demand in China.

Power move?

Looking ahead, BHP said it expected another strong year of growth from China, but warned the outlook for other key commodity markets remains fragile.

Cheif executive Chip Goodyear added that the company's interest in the Drax power station in the UK does not necessarily signal a more extensive move into energy generation.

"I don't see us generally running around and buying a lot of power plants but I do see us thinking where are opportunities to enhance the physical assets which we have expertise in running and managing.

"One thing you learn is you never say never," he said.