By Rebecca Keenan Oct. 22 (Bloomberg) -- BHP Billiton Ltd., the world's largest mining company, said a slowdown in China won't derail long-term demand for commodities that drove its first-quarter iron ore shipments from Australia to a record. Output of the steelmaking material rose 15 percent to 29.8 million metric tons in the three months ended Sept. 30, Melbourne- based BHP said today in a statement. BHP said ``uncertainty'' will persist in China after the economy grew at its slowest pace in five years last quarter, though industrialization will underpin future demand. The company gave no sign of following Rio Tinto Group and Freeport-McMoRan Copper & Gold Inc. in looking to delay projects because of the deepening global financial crisis. ``We are through the eye of the storm,'' said Ric Ronge, who helps manage A$1.6 billion ($1.1 billion) at Pengana Capital in Melbourne, said. ``BHP is still exposed to China, the world's best economy. They are well positioned to weather these storms.'' BHP fell 5.3 percent to A$27.75 at 2:49 p.m. Sydney time on the Australian stock exchange as mining companies declined after a slide in metal prices. Rio Tinto, the target of a $76 billion takeover from BHP, was little changed and is trading at a 26 percent discount to the offer, based on closing prices in London. `Too Great' The spread between Rio's share price and BHP's offer has become too great, prompting investors to buy Rio shares, MF Global Ltd. trader Anthony Anderson said today from Sydney. ``There has been some serious buying of Rio from offshore and domestically,'' he said. ``People are buying Rio and not BHP today.'' Economic growth in China, the biggest consumer of metals, slid to 9 percent in the third quarter. There was no doubt growth in China had slowed and demand won't likely pick up until next year, Vivek Tulpule, Rio's chief economist, said yesterday. ``We are well positioned to capitalize as markets recover,'' BHP said in the statement. ``We remain confident that the ongoing industrialization and urbanization of China and other developing economies will continue to drive strong longer-term demand.'' Rio said last week it was reviewing its near-term spending and project costs and the timetable for the planned sale this year of $10 billion of assets because of the global crisis. Freeport said yesterday it would delay expansion plans and halt buybacks to conserve cash because of the plunge in metal prices. Boost Ore BHP boosted iron ore output every consecutive quarter from the three months ended March 31 2007 through to the June quarter this year. Output in the June quarter was little changed from the previous three months. Production of metallurgical coal, used to make steel, fell 4 percent to 9.2 million tons, BHP said. Energy coal output was also down 4 percent at 18.8 million tons. Copper output was unchanged at 308,900 metric tons amid lower production from the Escondida mine, the world's biggest producer of the metal. Copper, which reached a record $4.2605 a pound on May 5 in New York, has declined 53 percent and traded as low as $1.992 a pound yesterday, the first time the price was less than $2 since December 2005. Output of petroleum, BHP's second-biggest earning unit, increased 15 percent to 34.8 million barrels of oil equivalent. Oil and condensates, a type of light oil produced in association with natural gas, jumped 43 percent to 16.18 million barrels in the quarter. To contact the reporter on this story: Rebecca Keenan in Melbourne at rkeenan5@bloomberg.net

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