Belt and road ‘a chance like no other’ for businesses, top mining firm says
BHP says companies must be ready to seize the opportunities China’s global trade initiative will bring, especially for commodity producers
China’s US$500 billion “Belt and Road Initiative” could deliver a major boost to demand for commodities, and producers must prepare to seize the opportunity, according to BHP Billiton, the world’s largest miner.
The plan to rebuild ancient trading routes from China to Europe overland and by sea is backed by hundreds of billions of dollars for infrastructure projects and has support from more than 100 nations on five continents. Investments worth US$313 billion to US$502 billion could be funnelled to 62 countries over the next five years, according to Credit Suisse Group AG.
“‘One Belt, One Road’ is expected to trigger huge demand for resources, services and technology,” BHP’s chief commercial officer, Arnoud Balhuizen, said on Thursday in a speech in the Australian city of Melbourne, referring to the original name of the trade plan. The initiative is “an opportunity like no other, and if we’re not prepared, we will lose our competitive advantage.”
BHP gets about 43 per cent of its full-year revenue from China and a total of at least 68 per cent from Asia, according to data compiled by Bloomberg.
