PERTH (miningweekly.com) – Mining giant BHP Billiton has reiterated its positive outlook for iron-ore demand from China, with iron-ore president Jimmy Wilson telling a conference on Tuesday that steel production in China would peak at about 1.1-billion tonnes within the next ten years.

“We remain confident that global demand for iron-ore will continue to grow, though at a more moderate rate, driven by urbanisation and industrialisation,” Wilson said.

Tracking the country’s economic expansion, Chinese steel production rose from 128.5-million tonnes in 2000, to 779-million tonnes by the end of 2013. However, while BHP Billiton, and other iron-ore miners are upbeat about continued demand from the Asian giant, some industry participants and market observers have warned that the era of rapid growth has come to an end and that production will peak at 850-million tonnes. A government think-tank has recently forecast that 650-million tonnes a year of steel capacity will be enough to meet the country’s demand in the coming years.

BHP Billiton reported a 19% increase in iron-ore production during the six months to December last year, producing 97.7-million tonnes, with the Pilbara operations delivering record production.

Wilson noted that BHP’s journey to deliver sustainable productivity benefits had encompassed a full review of the supply chain across mines, rail and port.

The company’s initial focus on equipment availability, use and operating rate was followed by low-cost debottlenecking initiatives.

“Across our mines we have realised significant productivity improvements that have resulted in increased shovel, truck and ore handling plant availability and use. Where appropriate, we have also installed relocatable crushers to increase high margin volumes.”

Wilson added that over the longer-term, BHP had a low-cost option to expand its Jimblebar production to 55-million tonnes a year, as well as to debottleneck its supply chain to deliver capital efficient growth towards a production target of 270-million tonnes a year.

“Our iron-ore business is well positioned to deliver high-margin volume growth at a lower cost, without the need for an additional mining hub or major port and rail infrastructure.”