BHP Billiton remains bullish on Chinese demand for commodities BHP Billiton has forecast growth of up to 75 per cent in demand for some commodities - especially energy - over the next 15 years, brushing aside concerns over Chinese growth and insisting the outlook is bright for the mining industry. China's economy should grow more than 7 per cent next year, Jac Nasser, BHP's chairman, said at the company's annual meeting. "We believe the Chinese government has room to pursue reforms that support its agenda of stable, long-term growth," said Mr Nasser. Assessments of the path of Chinese growth, and hence demand for commodities, are crucial to the fortunes of the world's largest mining groups. Chinese demand accounts for about 30 per cent of the $66bn of revenues last year at BHP, the world's largest natural resources group by market capitalisation. China's economy accelerated in the third quarter, and demand for some commodities has recovered this year, helping to shore up revenues at groups such as BHP that supply much of the iron ore and copper to steelmaking and construction projects. Andrew Mackenzie, chief executive, said demand for commodities would grow "as millions move from the Chinese countryside to the cities and the rising middle class demands improved housing and consumer goods such as air conditioners, cars and better quality food." He added that: "Growth in demand for energy is likely to be more dramatic than growth in demand for steelmaking materials." BHP is cautiously investing in a huge potash deposit in Canada as a way of potentially responding to growing demand for food and hence for fertilisers. Mr Mackenzie said demand for potash to improve agricultural yields should grow at 2 to 3 per cent annually to 2030. He did not say whether BHP was fully committed to a big expansion into potash output, saying that investing $800m annually in building the Jansen project - about 5 per cent of BHP's annual capital spending - was a way to "make sure we are ready to take advantage of this opportunity to add to shareholder returns." Mr Mackenzie said BHP's overall capital spending would drop further next year. Having been criticised by shareholders for poor returns from intensifying capital investment over the past decade, global mining groups are focusing on trying to get more out of existing assets. "Our focus on productivity is extracting more value from existing operations," Mr Mackenzie said. Mr Mackenzie took over as chief executive in February, part of a wave of executive changes at the world's largest mining groups following extensive writedowns on some investments.