[miningmx.com] — BHP Billiton sees the global economy remaining fragile in the near term and economic growth possibly slowing in the medium term, its chairperson said on Monday.
“In the short term, although many economies are recovering, the world remains in a fragile state with persistent levels of unemployment and threats of inflation,” BHP chair Jacques Nasser said in remarks prepared for a business lunch.
“For the medium term, we should be prepared for further downside as global monetary and fiscal tightening and economic restructuring take hold,” he said.
BHP has earmarked $9.5bn out of a staggering $80bn proposed spend over five years to dig more iron ore mines in Western Australia and expand coal mining in eastern Australia’s Bowen Basin.
Australia is the world’s biggest exporter of iron ore and coking coal and its biggest miners have placed big bets on the commodities boom, expanding to meet rising demand in Asia led by China.
BHP CEO Marius Kloppers has long maintained the firm takes a long-term view on market conditions, placing little emphasis on day-to-day movements for investment decisions.
BHP’s views match comments made by world number 3 miner Rio Tinto at its annual meeting last week.
Rio expects global markets to remain volatile in the short term and still sees financial markets as fragile due to economic and financial imbalances, Rio chair Jan du Plessis said on Thursday.
