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BHP Billiton says the global economy is picking up, with positive signs in the US and Japan, boding well for plans to drive an 8 per cent increase in overall production over the next two years and for shareholders hoping for capital returns.
In the company’s annual general meeting in London tonight, BHP chairman Jac Nasser and recently installed chief executive Andrew Mackenzie gave an optimistic outlook for global growth and the demand for the iron ore, petroleum, copper and coal that BHP produces.
“The (2012-13) period was challenging, with slowing global growth and weaker commodity markets,” Mr Mackenzie told the first BHP annual general meeting he has fronted as chief executive since taking over from Marius Kloppers this year.
“However, we are already seeing signs of recovery in the global economy.” Mr Mackenzie said a productivity drive pursued by the miner in the wake of shareholder calls for restraint as Chinese growth slowed last year was paying off.
BHP was now confident of boosting production by 8 per cent, based on converting all its production to copper equivalent, over the next two years, he said.
Mr Nasser, a former Ford boss who splits his time between the US and Australia, said moderate growth in the world’s biggest economy, led by housing and the stock market, had strengthened US household balance sheets.
“We are confident of the continued recovery in the US, despite some risk from the unwinding of monetary stimulus,” he said.
“We see strong growth in Asia – in Japan, the renewed policy push is positive for medium-term growth, if the government can achieve its stated objectives.”
With Japan still a major buyer of Australian commodities, particularly LNG, this is good news for exporters.
In China, weaker trade and softer manufacturing activity dragged on growth relative to expectations last financial year, Mr Nasser said.
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