PERTH (miningweekly.com) - Mining major BHP Billiton’s top brass have reiterated their confidence that global demand for their commodity offerings would continue, despite the current decline in commodity prices.
In the company’s annual report, chairperson Jac Nasser noted that the continued urbanisation and industrialisation of developing economies should support both demand for the product and the long-term growth of BHP’s pipeline of development projects across a range of commodities and geographies.
“Recognising these opportunities, we will continue to prioritise investment where a substantial competitive advantage exists, including geopolitical and fiscal stability,” Nasser said.
He added that the company’s project approvals process would ensure that capital was allocated in a disciplined fashion, while the quality and diversity of the asset portfolio would continue to drive strong returns.
CEO Marius Kloppers noted that despite the volatility in global economic conditions and commodity prices, the company had significant opportunity in the near term.
BHP has previously said that it would continue to invest capital to grow its business over the next two years, with 20 major projects currently in execution. The miner has stated, however, that it would not approve any additional projects during the 2013 financial year.
“We remain confident in the long-term outlook and future demand of our products, which will continue to be driven by the urbanization and industrialisation in the developing world,” Kloppers said.
“As current capital commitments reduce, we will allocate future capital to projects that maximise shareholder value and balance both short-term and long-term returns,” he added.
“We are in a fortunate position, with growth options unparalleled in the global resources industry, and together with our proven strategy, we will continue to deliver sustainable and superior long-term returns for our shareholders.”