(Recast) BHP commits to paying progressive dividend despite headwinds, but balance sheet is top priority

BHP Billiton has committed to paying out its progressive dividend while it takes stock of its misfortunes following the Somarco mine disaster and downturn in commodities, however the balance is the top priority.

BHP's leaders told their Annual General Meeting (AGM) in Perth on Thursday it was an extremely difficult time following the downturn in commodities and the collapse of the tailings dam at its Brazilian joint venture, however the company remains strong.

"Through productivity gains, we have maintained the ability to pay the progressive dividend, we have increased our capacity to grow your company and we have secured our strong balance sheet which we will never put at risk," BHP chief executive Andrew Mackenzie told shareholders on Thursday.

Maintaining it's A-rated balance sheet is the company's top priority over dividend payout during the downturn in commodities cycle.

That was "mandatory", BHP Chairman Jac Nasser said, "or otherwise you end up with some of the problems many of our peers have had over recent years."

Nasser and Mackenzie said the company was devastated by the tragedy at its Brazil joint venture, while ensuring it would support the region in the long term through the establishment of a compensation fund.

"A dedicated team has been created within BHP Billiton to support Somarco as they respond to the ongoing human, environmental and operational effects of tragic event," Mackenzie said.

BHP believes 11 people have died while eight are still missing from the disaster.

Protestors gathered outside of Perth meeting calling on BHP to pay billions in compensation, saying the Brazil incident was not isolated.

"BHP has a long history with problems with tailings," Mineral Policy Institute executive director Charles Roche said during the protest.

"All of this doesn't compare well with their stated policy not to dump tailings in the river."

Local analysts estimate the overall cost of clean up from the Somarco disaster will exceed one billion U.S. dollars, of which BHP will be liable for half.

Nasser said the company will do what it takes to find out what went wrong and would publically release the findings of an external investigation into the incident once it was concluded.

"We will learn from these tragic events and do all we can to never see them repeated," Nasser said.

Nasser said he was disappointed with the companies low share price, which has hit 7-year lows in recent days, however he believes global growth will return to healthier levels once major economies go through a transition.

At the close of local trade on Thursday, BHP Billiton's shares were up 61 cents, or 3.08 percent to 20.42 Australian dollars (14.63 U.S. dollars). Endit