Mining giant BHP says China and India growth will buoy demand despite profit drop

BHP Group's logo adorning the side of its gobal headquarters in Melbourne on February 21, 2023.

Australian mining giant BHP is optimistic China and India's growth will boost commodity demand, even as the company reported a steep drop in half-year profits.

"We believe that Chinese growth and Indian growth are going to provide a bit of a counterbalance and support overall growth over the next six to 12 months, and beyond," CEO Mike Henry told CNBC's "Street Signs Asia" on Tuesday.

In an earnings release, BHP said the long-term outlook for the company's commodities "remains strong," buoyed by population growth, rising living standards and the metals demand accompanying energy transition, which includes steel-making raw materials.

His comments come as the miner recorded a 16% revenue drop in the six months ended December, from $30.53 billion to $25.71 billion. The company's half-year profits came in at $6.46 billion, 32% lower than the $9.44 billion in the same period a year ago.

BHP attributed the declines to lower iron ore and copper prices. During the six-month period, iron ore prices fell to a low of $80.03 per metric ton on Nov. 1 while copper hit $3.29 a pound on Sept. 27.