Minews - BHP says on track to lift iron ore capacity to up to 270mn tonnes

(Minews) - BHP Billiton, the world's No. 3 iron ore producer, is on track to increase its annual capacity to between 260 million and 270 million tonnes, a senior official said on Wednesday.

BHP last month lifted its iron ore output guidance this year by 5 million tonnes to 217 million as it pushes ahead with new mine work in Australia. Michiel Hovers, vice president for marketing at BHP Billiton, also told an industry conference that the miner expects China's steel production to peak at 1.1 billion tonnes by the middle of the next decade. Globally, BHP sees steel demand growth remaining strong over the next 10 years and to moderate after that.

"We see strong global steel demand to continue to underpin demand for iron ore," he said.