BHP Billiton Limited
(ASX:BHP) Chairman Jac Nasser says increases in supply has placed downward pressure on many commodity markets and expects the trend to continue over the short term.
Mr Nasser says although lower rates of investment across the industry will ultimately lead to more balanced markets, resource companies will need to improve productivity and be prepared to adapt to change in this more challenging environment.
Despite the caution, Mr Nasser says BHP maintains a positive outlook over the longer term, as fundamentals such as wealth creation, demographics and urbanisation continue to create demand for commodities across Asia and other markets.
Mr Nasser also reaffirmed the global miners confident outlook in agricultural fertiliser potash, following a sizeable recent investment in BHP’s Canadian Jansen potash project.
BHP generated a net profit of $11.9 billion in fiscal 2013.
