BHP confident for the long term

Mining heavyweight BHP Billiton (ASX: BHP) has maintained a positive outlook on the global economy for the next decade, predicting that the world should experience “more balanced” growth as the US economy continues to improve and the Chinese economy changes focus.

Although BHP acknowledged that there are still risks, such as possible changes to monetary policy in the US, the miner believes that “the fundamentals of wealth creation, demographics and urbanization (will) continue to create demand for commodities across Asia and other markets,” stated chairman Jac Nasser.

Meanwhile, BHP also stated that its Permian basin project should no longer be considered as a single business unit because the prospective areas for shale oil were geographically different and common infrastructure could not be shared.

Furthermore, BHP said that whilst gas prices in the US are improving, it expects that the sharp increase in supply of iron ore and coal by companies such as Rio Tinto (ASX: RIO), Fortescue Metals Group (ASX: FMG) and itself would put downwards pressure on the price of commodities. Whilst this would reflect a short-term weakness, the company is confident for the long term.

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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

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