BHP Billiton's distributable profit (excluding non-recurring items) for the 2011 financial year (from June 30, 2010 to June 30, 2011) reached $21.7 billion, an increase of 74%, with coal slime dryer performance once again breaking records.
In the long term, BHP Billiton expects a slowdown in the strong growth rhythm of steelmaking raw material demand, especially in China, where basic growth will return to more sustainable levels. The resource intensity per unit GDP will decrease, and the price of ball mills will see a trend toward slowing Chinese iron ore demand. However, BHP Billiton still has a positive outlook on the fundamentals of iron ore and coking coal.
Nevertheless, BHP Billiton remains confident about the long-term market for core commodities, believing that commodities are still the preferred assets in the 2011 financial year. Strong demand from emerging economies continues to drive up and steepen the global commodity cost curve. Supply constraints remain a persistent theme, helping to push overall prices higher. BHP Billiton emphasizes that many commodities (including coking coal, iron ore, copper, and crude oil) may experience supply interruptions in the second half of the 2011 financial year, but this phenomenon is not expected to persist long-term.
Looking ahead, BHP Billiton believes that monetary policies in key economies such as China and India are producing the expected effects. Although fixed asset investment growth in China remains vibrant, the impact of tightening policies on iron ore demand will gradually become evident. Previously, the CEO of Australia's third-largest iron ore producer FMG had expressed that China’s economic policies might have a mild effect on iron ore demand.
The Australian mining giant BHP Billiton, which has again achieved record-breaking performance, stated in its latest financial report that it remains confident in the long-term market for core commodities, believing that commodities are still the preferred assets in the 2011 financial year, including manganese ore processing equipment. However, BHP Billiton anticipates a slowdown in the growth rate of China's iron ore demand.