The commodity markets will sustain its growth in the medium to the long term in spite a projected slowdown in inventories of key buyers including China, Xstrata Plc's Chief Executive Officer Mick Davis in a mining conference on Wednesday.

The Geneva-based global mining company said the short term prospects do not deter them from seeing the medium to long term positive outlook for the commodity markets.

"The impact has been exacerbated by the events in Japan in March, recurring concerns about southern European debt and unrest in the Middle East. But despite these short-term influences in commodities markets, we remain confident about the medium-to long-term fundamentals of our industry," he said in a related report by Reuters.

Carbon tax

Mr. Davis also said that Xstrata does not contradict procedures to decrease greenhouse gas emissions, although there are risks involved if done on a regional basis.

The mining industry in Australia, where some of the mineral production facilities of Xstrata is located, has been in loggerheads with the national government as to how to reduce the said greenhouse emissions.

The Federal Government of Australia is setting up a carbon tax to take effect in 2012. Mr. Davis said that a precise discussion was required to thresh out the details of this planned carbon tax policy of the government.