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BHP execs are bullish on metals prices
By Tom Stundza
Purchasing
March 28, 2007

Top executives at mining giant BHP Billiton caution buyers that transaction prices of copper, nickel and other base metals will remain high for the next several decades as demand climbs from China,India and other Asian nations.

BHP Billiton’s chief executive officer, Chip Goodyear, says he is “positive” that the development of China and India into world economic powers “is the reason for a multi-decade increase in commodity prices.” Speaking to the media while on business in Chile, the Australian mining exec says the three-year surge in nonferrous prices is a so-called super-cycle that shows no signs of abating.

Analysts are suggesting that a metals “super cycle'” will keep prices elevated as supplies lag behind demand. Diego Hernandez, president of BHP's base-metals unit, agrees: “We expect that this super cycle will continue for a while. We think that demand will continue to stay strong for many years.''