By Eric Onstad
LONDON, Dec 1 (Reuters) - Mining companies will be forced to post a new wave of writedowns and dividend cuts due to the slide in metals prices, an executive from the world's biggest fund manager said on Tuesday.
BHP Billiton BLT.L BHP.AX , the world's biggest mining group, however, may manage to sustain its payouts to shareholders, said Evy Hambro, chief investment officer at Blackrock (N:BLK)'s BLK.N natural resource division.
"In general, the absence of cash flow will put pressure on dividends, but some will be able to stay the course," Hambro told the Mines and Money conference in London.
"BHP haven't cut their dividend since 1935. It will be a brave management team and board that would take that decision."
Speculation has increased that BHP Billiton may ditch a policy of paying ever higher dividends, especially after a mine disaster in Brazil.
In the overall sector, the carrying values of mines has not kept pace with lower prices of metals such as copper and zinc, Hambro said.
The Thomson Reuters/Core Commodity CRB Index .TRJCRB is down about a fifth this year after sinking to its lowest levels in 13 years last month.
"There are definitely more writedowns to come... we're going to see quite some substantial writedowns ahead," he said.
Hambro also said the sector needed more production cuts but this alone would not boost prices because a revival in demand from China was also vital.
"We haven't even started in terms of production cuts, we need to do a lot more. We don't see any light on the horizon in terms of demand so self-help will be the necessary evil for many companies."
BlackRock is the world's largest asset manager, managing $4.5 trillion globally at the end of September.