BHP Billiton chairman says Asian demand to continue

SYDNEY (AFP) — Asian economic growth will slow at some point but demand for raw materials from countries such as China is expected to continue, the chairman of the world's largest mining company said Wednesday. BHP Billiton's Don Argus said commodity markets would be volatile in the short-term due to the global financial crisis but he was confident longer-term market fundamentals would support growth in demand. "I have no doubt that economic growth in the Asian region will slow at some point but, if I look at China specifically, the slowdown is concentrated in regions oriented to the light export sector," Argus said. "The sectors of the economy oriented more towards domestic consumption are still performing well despite increasing input costs, particularly for energy." "We expect Asian demand for our products to continue," he said. The Anglo-Australian giant, which this year reported a record profit of 15.4 billion US dollars, produces iron ore, coal, oil and gas -- products much in demand in rapidly developing Asian nations. In an annual report to shareholders, Argus said the economies of developing countries were central to the world's economic growth amid the lessening influence of Europe and the relative shrinkage of the US economy. "As the world's largest diversified resources company, we are watching the creation of competitor companies that are spearheading the economic emergence of countries like Russia, Brazil and China." He said these economic shifts provided the context for BHP Billiton's hostile takeover bid for rival Rio Tinto, the world's third-largest miner. Argus said the two firms together could "help meet the developing economies' demand for resources better and faster than the two companies do apart." Rio has rejected BHP's 3.4-for-one share offer, saying it significantly undervalues the company.