BHP Billiton Ltd. (BHP.AU) Chief Executive Marius Kloppers said Wednesday the miner remains committed to its nickel business despite new sources of production potentially capping the upside for nickel prices.

BHP's closure of its Ravensthorpe nickel laterite operation and sale of its Yabulu plant have sparked rumors that it could be looking to sell its Nickel West business as well, but Kloppers said that the miner is sticking with its nickel assets despite some changes to the market.

Kloppers said nickel pig iron production in China had changed the market and meant that there was a large amount of installed capacity that could kick in when demand picks up, which could cap the upside for nickel prices.

"I don't think that that changes our commitment to the product at all and we believe that the portfolio, reconfigured, is one that we have committed to and in due course we want to grow," he said.

Asked about any impact on BHP's dealing with China as a result of the arrest of Rio Tinto Ltd. (RTP) executives, Kloppers said the miner was operating as normal in China and selling every ton of iron ore it could produce.

BHP has had contact with the European Union over its planned iron ore joint venture with Rio Tinto, Kloppers said, but declined to elaborate.

-By Alex Wilson, Dow Jones Newswires; 61-3-9292-2094; alex.wilson@dowjones.com