excellent short term outlook

Don't know what that says about the long-term but with 23 projects in either execution or feasibility I am not oo bothered.

http://www.lse.co.uk/FinanceNews.asp?shareprice=&ArticleRef=56099&ArticleHeadline=BHP_Billiton_says_shortterm_global_economic_outlook_positive

Monday, 25th September 2006 06:31

BHP Billiton says short-term global economic outlook positive

SYDNEY (XFN-ASIA) - BHP Billiton said it believes the short-term global economic outlook remains positive, underpinned by China's growth.

Chairman Don Argus said in the Anglo-Australian group's annual report growth in Asia will help drive the global economy with Japan's expansion now well-established and China's economic growth expected to remain strong.

Argus added that the US economy is likely to remain solid.

But, he said, the global short-term outlook carries risks such escalating political tensions which are contributing to a tight oil market and are adding to increased uncertainty in all markets.

Argus said forward prices of London Metal Exchange metals and oil remain above long-term historical averages indicating that large-scale supply surpluses are not being anticipated in these markets.

'Similarly, there is no sign of an imminent retreat in oil and bulk commodity prices,' Argus said in the report.

BHP Billiton chief executive Chip Goodyear said the group's exposure to the production and sale of

more than 20 individual commodities throughout the world, will continue to underpin the success of the company.

'This year, in response to record demand, we stretched production from these assets to new levels, with annual production records set for aluminum, copper, iron ore, nickel and natural gas,' Goodyear said.

Last month, BHP Billiton, rated the world's largest mining company with 38,000 employees, reported net profit for the year to June rose to 10.45 bln usd from 6.39 bln on strong commodity prices, largely driven by China's demand for raw materials.

Goodyear noted China will continue to play a large part in providing underlying support to commodities markets for years to come.

He said China is determined to become a 'knowledge economy by 2050'.

'To achieve its vision, hundreds of millions of people will need
to move from rural to urban areas,' he said.

Goodyear said such a transition will require residential dwellings, industrial facilities and

associated infrastructure.

'All the raw materials that we produce and sell are essential elements of these infrastructure

requirements,' he said.

'We believe the world may be witnessing just the beginning of a whole new period of change and BHP Billiton is an essential element of that change.'

The group invested 5.0 bln usd invested in new projects during the latest year to June and a further 1.9 bln on improving existing assets.

Goodyear said the group's development pipeline currently has 23 projects in either execution or feasibility, representing a total investment of 13.8 bln usd.