BHP Billiton denies that Rio Tinto JV at Pilbara is at risk

Speaking at his final annual general meeting as BHP Billiton chairman, Don Argus said reports rival Rio Tinto had cold feet over its $US116 billion ($A124.48 billion) joint venture with Rio Tinto Ltd may fail were wrong.

"That is not the case from within both parties and it is certainly not the case from the majority of shareholders," Argus said on Thursday in response to a question.

"There is no doubt about the commitment at the top of either company," he said.

Under the merger plans BHP Billiton will pay Rio Tinto a $US5.8 billion ($A6.22 billion) equalising payment and the companies will merge their Western Australian iron ore operations.

It is thought the joint venture deal could unlock $US10 billion ($A10.73 billion) in synergies between the companies.

According to recent media and analyst reports, Rio Tinto may be rethinking the joint venture because its financial position has strengthened since it was arranged.

BHP Billiton chief executive Marius Kloppers told the annual general meeting in Brisbane that he hoped the two companies would conclude definitive agreements on the merger before the end of the year.

BHP Billiton also said it would announce the fate of its troubled Ravensthorpe nickel operation in WA before the end of the year.

The mine was mothballed in January this year, resulting in 1,800 job losses.

"We can restart it or we can sell it," Kloppers said, adding that he could not disclose what would be decided.

Kloppers told shareholders the resilience of the Chinese steel sector was surprising and was expected to continue to be resources-intensive.

Despite seeing the first signs of steel restocking commencing in some major markets, he said the miner was progressing very cautiously in the US and Europe.

"We continue to believe that we will come out of this recession less strongly than in previous cycles," Kloppers said.

Argus said foreign investment in Australia should not be denied, even from sovereign wealth funds.

Recently he told an audience in Melbourne that Australians need to debate how comfortable they were with a foreign government owning endowment assets.

As in past annual general meetings, the company came under fire from some concerned with BHP Billiton's uranium mining.

Argus told the meeting there needed to be a global effort to reduce carbon in the atmosphere.

He said any solution would require rapid deployment of low-carbon energy sources such as nuclear power, gas, renewables and coal with carbon capture and storage.

Argus, who is due to retire early next year, also paid homage to those he had worked with at BHP Billiton during his time at the company.

He said he had great confidence incoming chairman Jac Nasser and the board would take the company to greater heights.