Demand from China has pushed BHP's profits higher

BHP said profits after one-off costs surged by almost 90% to $6.93bn (�3.9bn), boosted by global demand for products such as copper and iron ore.

The mining sector has been buoyed by the soaring price of metals - particularly driven by demand in China.

But unlike its rivals, BHP also has oil interests - with its petroleum unit delivering a quarter of its earnings.

Surging iron ore prices were the main driver of the company's profits, with prices up 71.5% since April. Copper has also been trading at near record highs.

During the year to June 2005, overall group sales increased by 27.5% to $31.8bn.

Slowdown ahead?

However, the company has warned of a slowdown in coming months, particularly in China as Beijing takes steps to cool the country's red-hot growth.

"Prices will inevitably ease from their highs as demand growth slows and new supply comes on stream, although we continue to expect prices to remain high by recent historical standards," BHP Billiton said.

BHP also said that June's takeover of Australian miner WMC Resources had given earnings a small boost at the end of the financial year.

The takeover means BHP now has access to more than a third of the world's uranium, and abundant supplies of copper and nickel.

BHP Billiton, which is listed on the Australian and British stock exchanges, employs some 35,000 people in 20 countries around the world.