BHP Billiton Chairman Says China Will Drive BHP's Production Growth

(RTTNews) - At the annual general meeting in Perth on Thursday, Jac Nasser, the chairman of BHP Billiton Ltd. (BHP, BHP.AX, BBL, BLT.L), said that the company sees strong growth overall in Asia. But, in china, which accounts for about 30 percent its revenue, weaker trade and softer manufacturing activity have been a slight drag on growth relative to expectations. However, despite slowing slightly, china's growth remains an important driver for the company's industry.

Nasser said that in the past 20 years more than 650 million people had been lifted out of poverty in China alone, and expects that another 250 million will move to cities over the next 15 years.

He also said that the company expects the Chinese economy to grow at over seven percent next year. China and other emerging economies will be the major drivers of global economic growth in the long term, which could deliver up to a 75 percent increase in demand for some commodities over the next 15 years.

He noted that only a few countries in the world were well placed to supply this increased demand for commodities, and Australia was one of them.

At the meeting, the Chief Executive officer of the company Andrew Mackenzie said that over the next two years, BHP expects to increase production by eight percent per year, on a copper equivalent basis, and deliver additional productivity-led cost saving.

The company anticipates demand for potash, a fertiliser used in agricultural production, will increase by 2-3% per annum to 2030.

Mackenzie also said that the growth will be driven by a rising population and greater economic prosperity. The company's continued investment in potash, at an average annual spend of $800 million, will make sure the company is ready to take advantage of the opportunity to add shareholders returns.