RIO-TINTODemand from China Continues to be Strong, says Rio Tinto
By Todd Flagg
13 Apr 2007 at 12:38 PM
Representatives from Rio Tinto Group [NYSE: RTP], the world's third- largest mining company, expect China's demand from metals and minerals to remain strong this year and continue to keep commodity prices above historical levels.
"There is strong momentum in most Asian economies which represent big markets for us," Chief Executive Officer Leigh Clifford said today at a shareholder meeting in London.
To meet rising demand, London-based Rio Tinto will increase annual iron-ore production capacity in Western Australia to 220 million metric tons a year by 2009, almost twice capacity in 2003. A further increase beyond 220 million tons is planned, Clifford said.
Iron-ore prices have advanced for five consecutive years as mining companies failed to expand output fast enough to meet demand from steelmaking nations such as China. BHP Billiton Ltd., Anglo American Plc and Rio, the world's three largest miners ranked by sales, will probably spend more than $10 billion through 2015 on iron-ore projects, Credit Suisse Group estimated in February.
---GLTA-BOAZZ