Iron Ore Miners Eye Slower China Growth; Upbeat Long-Term

--BHP estimates that seaborne iron-ore demand will grow at single-digit rate but will remain strong

--Rio Tinto confident of a soft landing for China's economy

--Both BHP and Rio reaffirm plans to continue investing in iron ore businesses

By Alex MacDonald

Of DOW JONES NEWSWIRES

Iron ore miners are predicting slower growth in iron ore demand this year as China, the world's second-largest economy, cools but the long-term iron ore outlook remains upbeat, buttressed in part by generally robust Asian demand.

Ian Ashby, president of BHP's (BHP) iron ore division, told reporters in Perth Tuesday that growth in China's demand for steelmaking's raw ingredient will drop "to single digits, if it is not already there." But he noted in a presentation that seaborne iron ore demand is "expected to grow strongly" in the years ahead.

China earlier this year cut its 2012 growth target for gross domestic product, or GDP, to an eight-year low of 7.5% while its trade deficit ballooned to a record $31.48 billion in February.

These figures, combined with a raft of weak survey data that point to deteriorating activity and confidence in manufacturing, have stoked fears that China is slowing at a faster rate than Beijing and many economists thought.

Despite the slower growth, BHP and Rio Tinto (RIO) both said they are pushing ahead with plans to sharply increase their production of iron ore, as well as other commodities. Rio and BHP are the second- and third-largest seaborne iron- ore producers after Brazilian miner Vale SA (VALE).

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Iron Ore Miners Eye Slower China Growth; Upbeat Long-Term