BHP Billiton has a fragile world economy in the short term

MELBOURNE- Top global miner BHP Billiton (BHP).(AX) sees in the global economy remains fragile in the short term and warned that economic growth could slow to medium term, echoing recent comments from rival Rio Tinto (RIO.)(AX).

BHP Billiton President Jacques Nasser said Monday that moves by the United States and Europe finally to increase interest rates to tame inflation may come when their economies are vulnerable.

"In the short term, although many economies are recovering, the rest world, in a fragile state with persistent levels of unemployment and the threat of inflation" BHP Chairman Jacques Nasser, said at a business luncheon.

"For the medium term, we should prepare for disadvantages such as monetary and fiscal tightening more comprehensive and restructuring economic foothold," he said.

Plans BHP to spend $ 80 billion over five years to expand iron ore, coal, copper and uranium production to meet rising Asian demand, discouraged by the price swings first to the daily.

RESPONDING TO JAPAN

BHP plans to decide in 2012 to go ahead with the expansion of its Olympic Dam mine, which could cost more than $ 20 billion that it seems to triple the capacity of copper production and the capacity to more than quadruple to mine uranium.

Chief Executive Marius Kloppers, said last week he not the Japan nuclear crisis expected to affect the expansion plan, and Nasser said that the world would require a range of energy sources to meet demand while reducing increasing carbon emissions.

Nasser warned against moves early to suppress nuclear energy, following a call by Prime Minister Naoto Kan du Japan close a nuclear site in the Centre of Japan after the worst nuclear crisis in 25 years.

"I do not think that an overreaction at this stage is valuable for the world and for energy solutions", he told journalists.

"I still think that there is, in the solution of mix of all energy for the world, a place of safe nuclear power production," Nasser said, correspondence from comments by the President of Rio Tinto, Jan du Plessis, last week.

After having failed on three major operations since 2007 — a full support of Rio Tinto, a joint venture with Rio iron ore and taking control of Potash Corp (POT.)(N) - BHP was calm on the front of the acquisitions, focusing instead on his own projects.

Nasser said that BHP would be willing to work with the Chinese on the projects, as Rio Tinto has done with unit (2600.HK) Chalco of Chinalco Guinea Simandou iron ore project, but only if the partner brought unique business benefits.

"We are not against sitting and the search for ways to improve our performance by establishing partnerships with other people." We want to just be satisfied when we do, we do for a good reason, "he says.

BHP shares increased by 0.5% on Monday, exceeding an increase of 0.3% in the broader market.