Reuters reported that BHP Billiton is betting on strong returns from the copper business even though the price of the metal is unlikely to rise in the near term.

Mr Andrew Mackenzie CEO of BHP Billiton said that Global copper output is likely to increase, keeping prices stable or triggering a slight drop soon but that will be offset by strong demand in the long run.

Mr Mackenzie said that "Copper is a key part of our strategy for the future, as is iron, coal and oil. There could be a preference to invest more in copper than in other commodities in the future because we see that in the long run it might have better returns."

Global demand for the red metal will likely rise 3% per year. BHP Billiton on July 25 announced AUD 3.43 billion investment in a sea water desalination plant at the Escondida mine it controls in Chile.

Mr Mackenzie said that China, the world's top copper buyer, is in a stage of economic transition. The world's No. 2 economy is shifting from construction growth to a consumer led economy.

He said that "This might not be as bad for copper as had been thought. I don't like to comment on prices but we have to prepare for a copper outlook around the current price or perhaps a bit lower, that is around AUD 3 per pound.”