BHP expects commodity volatility

BHP Billiton expects commodity markets to remain volatile in the short term but has forecast Asian demand for its products to continue. Chaiman Don Argus said the company had "no doubt'' economic growth in the Asian region would slow at some point, but that slowdown would be concentrated in regions orientated to the light export sector. "While we expect commodity markets to remain volatile in the short term, we are confident that longer-term market fundamentals should support growth in commodity demand and, therefore, our revenues,'' Mr Argus said in the company's US annual report. Mining stocks had suffered a "significant de-rating'' since May on the back of short-term uncertainty, he added. "This is disappointing for the management and shareholders of BHP Billiton,'' he said. Mr Argus' total remuneration package increased by 12.4 per cent in fiscal 2008 to $US920,475 ($1.16 million), up from $US818,651 in the previous corresponding year. BHP Billiton (bhp.ASX:Quote,News) chief executive Marius Kloppers reiterated that combining the company with rival Rio Tinto (rio.ASX:Quote,News) would "provide greater value than the two companies can provide separately''. The world's largest mining company is proposing a scrip-based takeover of Rio Tinto, valued at about $US140 billion. "BHP Billiton does not need Rio Tinto to have a great future, but we believe the two companies combined will be better placed to meet the world's future need for our products,'' he said in the annual report. Mr Kloppers' total remuneration package increased by 71.7 per cent in fiscal 2008 to $US6.87 million, up from $US4 million in the previous corresponding year. －－news com.au