resources demand, page-7

BHP boss 'reassured' about China demand

New BHP Billiton boss Andrew Mackenzie is confident China's new leadership is re-balancing the economy in such a way that demand for commodities will be sustained in the long term.

Mr Mackenzie on Thursday said BHP was positive enough about growth in its iron ore, coal, petroleum and copper pillars - 'with the possibility of a fifth one, potash' - that the company could focus on a simple strategy of increasing productivity.

'On the whole, I think the (Chinese) economy under the guidance of the new leadership is being re-balanced (with), perhaps, just slightly lower levels of growth that I think will sustain demand for commodities long term,' he told a Melbourne Mining Club event at Lord's cricket ground in London.

Mr Mackenzie, who travelled to the United Kingdom from China overnight, said Chinese Premier Li Keqiang 'was extremely reassuring about the demand for resources' when the pair met.

http://www.skynews.com.au/businessnews/article.aspx?id=877972&vId=