By CNN's Geoff Hiscock, Asia Business Editor Thursday, July 24, 2003 Posted: 0718 GMT ( 3:18 PM HKT)
China's automotive industry is one of the fastest growing sectors of the economy, fuelling demand for steel.
SYDNEY, Australia (CNN) -- New production figures show global miners BHP Billiton and Rio Tinto are relying increasingly on China's surging economic growth to keep sales on track.
BHP said Thursday it shipped a record 80.3 million tonnes of Western Australian iron ore in the year ended June 30, in response to strong Asian demand, particularly from China.
Rio Tinto said in its own production report on Wednesday that strong demand from key markets -- primarily China -- pushed its second-quarter iron ore production 19 percent above the same period in 2002.
So far this year, it has shipped 35.7 million tonnes of iron ore from its West Australian mines, with second-quarter demand from China up 43 percent over 2002.
With its economy running at an annual growth rate of 8 percent-plus and its car industry targeting production of 2 million units this year, China has become a massive buyer of iron ore and coking coal -- the key metals used to make steel.
Earlier this month, China's National Bureau of Statistics reported first-half growth of 8.2 percent and said that despite the second-quarter slowdown caused by the outbreak of SARS, the full-year figure would top 8 percent.
At the same time, money is continuing to pour into China, with overseas direct investment in the first half of the year topping $30 billion, up 34 percent year on year.
Much of that money is coming from global automakers such as Toyota, GM, VW, Nissan and Honda, who are setting up or expanding joint ventures with Chinese partners to meet the booming demand for cars.
http://edition.cnn.com/2003/BUSINESS/07/24/australia.miners/