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Commodity bull run is not over - Peter Beaven, BHP Billiton
In an interview on 702 @ 18:15 on Wednesday 22 August 2007
[miningmx.com] -- THE prices of commodities will remain volatile, but the bull run is not over yet, said Peter Beaven, global president of manganese at BHP Billiton.
"The concern that the commodities bull run has come to an end is not a real story, there is obviously some degree of volatility in the market, but the physical supply and physical demand will rule the commodity prices,” Beaven said on the World At Six week-nightly business radio show.
"Short-term volatility can be absorbed in the company of our size and strength so we're really not worried about that at the moment."
There has been a structural change in the commodities market, driven by structural changes in China and India, he said on the Moneyweb Power Hour.
“So for the foreseeable future, until such time as the people in China decide that they no longer want to develop a standard of living
equivalent to the Western world or the developed world - which is not likely to happen - we think that we're in good shape,” Beaven said.
Twenty percent of BHP Billiton’s turnover came from China and 4% from India in the 2007 financial year compared to 16% and 3% respectively last year.
BHP Billiton has a $21m pipeline of projects in execution and feasibility study.
"We have a deep portfolio of organic projects and a further $50-bn worth of projects to grow our company, so there is no pressing need for us to do acquisitions," he said. “We will continue to look at merger and acquisition opportunities but those assets would have to meet our criteria, which include large expandable, low-cost assets.”
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