All is well with BHP Billiton, this according to BHP chief executive Marius Kloppers despite the 5.5 percent profit slide the mining giant had recorded in the first half of financial year 2011-2012.

Kloppers insisted over the weekend that BHP's overall performance has been so far remarkable but he allowed that tweaks may be implemented to address the softening of commodity prices in the global market.

He added that the problems, quickly adding that they are manageable at this time, were mostly brought about by the financial crisis battering Europe and the cooling down of the Chinese economy.

In order to meet profit targets, Kloppers hinted that mining productions may need to be adjusted downward.

"Where an existing operation doesn't make profit (BHP may) curtail production," Kloppers told ABC.

"Given some of (the) price movements that you've seen, not all of our operations are making profit to the same extent at the moment," the mining boss also admitted during his Sunday television interview.

However, Kloppers clarified too that amidst the moderating levels of iron ore prices, BHP still stands to rake in considerable profits from its mining projects, with the fall on returns amply filled up by lowering operational costs.

He cited as an example the favourable cost for BHP to move its products from Western Australia to China, "(with freight cost) as low as they've ever been."

"We're going to make very good returns on those iron ore projects," Kloppers declared.

That rosy prospect emboldened him to forecast that BHP's $27 billion expansion plans will push though as planned and only earth-shaking events will prevent that blueprint from unfolding.

Kloppers also touched on the recent merger between Xstrata and Glencore, saying that consolidation moves, especially in the resource sector, were almost a natural consideration for groups seeking to grow further.

He added that mergers are normally presented by opportunities, suggesting too that BHP is ready to embrace such situation but he refused to speculate on anything at this time.

"I have absolutely no doubt that over time we will do more transactions, but we're pretty busy at the moment and it's difficult for me to speculate on any individual transaction," Kloppers told Agence France Presse (AFP).

BHP has had its share of giant attempts to swell its ranks, including the failed iron ore partnership with its chief rival, Rio Tinto, in 2010, which was met by regulatory opposition.

The Saskatchewan government in Canada also hosed down attempts by BHP to annex fertiliser-producer Potash Corp in the same year, part of the company's global growth plan to capitalise on the projected rise of food prices over the next few years.