BHP Billiton has followed rival Rio Tinto in alerting the markets to a slowdown in the voracious appetite of China for raw materials.

The world's largest mining group said today that China was "not immune to the global slowdown" and that macroeconomic indicators showed that "Chinese growth has softened during the quarter, albeit from very high levels".

However, BHP added that China and other developing country's hunger for resources would continue to drive strong long-term demand for commodities.

The comments from the mining giant were made in its production report for the three months to 30 September, which together with its report on exploration and development, forms an interim management statement for the company.

Last week, Rio Tinto's chief executive Tom Albanese gave a stark warning that China's demand for metal was slowing and said that he expected a marked reduction in demand.

“In the near term, the Chinese economy is pausing for breath. China is not completely insulated from an OECD recession and we will see an impact on Chinese exports,” Mr Albanese said.

Rio's was seen as the first acknowledgment by a leading mining group that all is not well in China, where steel mills have been suffering from weak prices and export demand. Now BHP has echoed its comments, sending shares in the company falling by almost 6 per cent in London trading to 910p. Rio Tinto shares were also down 4.5 per cent.

China’s National Statistics Bureau confirmed earlier this week suspicions that the Asian giant was not invulnerable to the downturn when it reported the economy had expanded by 9 per cent in the third quarter of 2008, down from 10.9 percent a year earlier and its slowest pace in five years.

Analysts believe that China's slowdown is also being exacerbated by a “post-Olympics slump.”

BHP Billiton said iron ore output in the third quarter rose 15 per cent to 32.87 million US tons on the previous corresponding quarter as the company expanded projects in Western Australia state.

Crude oil, condensate and natural gas liquids production rose 31 per cent to 18.9 million barrels while total petroleum products rose 15 per cent 34.8 millions barrels of oil equivalent due to new projects.

Aluminum output declined 8 percent during the latest quarter to 340,614 US tons (309,000 metric tons); uranium production climbed 19 per cent to 1,224 US tons (1,110 metric tons); and manganese ore output was 27 per cent higher at 2,017 US tons (1,830 metric tons).

The company spent $166 (£102) million on mineral exploration during the latest quarter and $148 million on oil exploration.

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