BHP Billiton to Follow China on Its Next Growth Journey

BHP Billiton will invest heavily in energy and food as it follows China on its transition from a construction-led economy to a consumption power-house. 

Speaking to the media in Beijing where he wound up a 10-day tour of meeting BHP’s commodity customers in China, India, Japan and South Korea, BHP boss Andrew Mackenzie said while Chinese steel production would remain strong the company was also keen to meet the country’s other needs.

While not commenting directly on lower iron prices, which have dropped 30 per cent since the start of 2014 and sit at around $US92 a tonne, Mackenzie said he was “open to the fact that this year a lot more low-cost supply has been added and we expect the demand to grow”.

Highlighting the company’s low cash cost, he said BHP was still “strongly competitive at prices much lower than today's prices”.

And while coal prices have also been hammered, Mackenzie was bullish about its future demand in China with energy consumption set to increase.

(miningaustralia.com.au Edited by Topco)