The group's figures came as a strike at its Escondida mine in Chile - the world's largest mining copper - entered its 16th day. The mining group is allowed, under Chilean law, to abandon collective bargain after 15 days of strike action and seek deals with individuals.

Miners yesterday rejected BHP's latest pay deal - an improved four per cent increase, from a 3 per cent previously.

BHP said in its statement that strong metal prices will continue but the pace of growth will slow.

"Therefore we are likely to see an extended period of high cyclical prices," but rates of growth are set to slow down in the face of high energy prices and higher interest rates, it said.

The group said increasing investor interest in commodity markets coupled with low stock levels had "undoubtedly contributed to [high] price levels and volatility".

Underpinning prices would be a further tightening of supply, as regulatory approvals and rising capital costs delay the development of new mining projects, and as natural and man made events continue to disrupt supply.

The news came after workers at Escondida, the world's largest copper mine, BHP saw growth in China, the US, Japan, and Europe which have delivered benefits for Russia, Australia and parts of South America.

Shareholders will get a final dividend increased by 27.6 per cent to 18.5 cents, taking the full year dividend to 36.0 cents and BHP said it would return a further $3.0 billion (£1.6 billion) of capital to shareholders, taking the total for 2006 to $5.0 billion.

Track BHP Billiton's share price by clicking here.

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