China growth to continue: BHP Billiton
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AAP
2009-11-26
Resources giant BHP Billiton believes the powerhouse of Chinese growth will continue.
The resilience of the Chinese steel sector was surprising, BHP Billiton chief Marius Kloppers has told the company's Australian annual general meeting in Brisbane.
"We have no reason to change our long-held view that Chinese growth will continue and will continue to be resources-intensive," Mr Kloppers said.
He said BHP Billiton would maintain its focus on meeting the needs of China.
But Mr Kloppers said despite seeing the first signs of steel restocking commencing in some major markets, it was progressing very cautiously in the USA and Europe.
"Even though market sentiment has improved since I spoke at our London AGM a month ago, we continue to believe that we will come out of this recession less strongly than in previous cycles," Mr Kloppers said.
BHP Billiton chairman Don Argus, speaking at his final AGM before retiring, said there needed to be a global effort to reduce carbon in the atmosphere.
He said any solution would require rapid deployment of low-carbon energy sources such as nuclear power, gas, renewables and coal with carbon capture and storage.
He said behavioural and lifestyle changes involving industry, government and consumers to dramatically increase energy efficiency would also be needed.
Mr Argus said carbon capture and storage technology was potentially useful but so far the technology was uncertain and the cost yet to be established.
"It will require substantial re-engineering of existing coal plants and in some instances complete replacement of furnaces," Mr Argus said.
"Whichever option is adopted, it will be expensive and any cost will flow directly to industry and eventually to all consumers," he said.
