Rio Tinto gives upbeat outlook for China
Rio Tinto is upbeat about the outlook for economic growth in its key market China and says the company is poised for rapid growth in 2008.
By Agencies |
MELBOURNE: Rio Tinto Ltd was upbeat on Friday about the outlook for economic growth in China, its key market, and said the company is poised for rapid growth in 2008.
The Chinese economy is still strong and becoming less dependent on the slowing US economy, Chief Executive Tom Albanese said in a presentation to media on a tour of the company's operations in Western Australia state.
"From 2008 onwards Rio Tinto is poised for exceptional growth as we reap the rewards of investment in exploration, resources, infrastructure, technology and people," Albanese said in the presentation.
Rio Tinto, based in the UK and listed on both the London and Australian stock exchanges, said if the US goes into recession it would reduce Chinese gross domestic product by less than 1 percentage point and that China would still be expected to post growth of 10 per cent.
Albanese said forward prices for iron ore and aluminum are stronger than for oil and nickel.
Rio Tinto Friday also announced pans for automation of its iron ore mining process in Western Australia and said it has signed a deal with Komatsu Ltd for the development of an automated rail system.
Rio Tinto shares spiked as much as 5 per cent Friday on speculation that rival miner BHP Billiton Ltd. would increase its bid for Rio. Some traders were skeptical of the rumor, which is the latest in a steady stream out of London after Rio rejected the original bid last year.
Later in the afternoon Rio Tinto's shares were at A$121.99, up 2.9 per cent from Thursday's close.
The Chinese economy is still strong and becoming less dependent on the slowing US economy, Chief Executive Tom Albanese said in a presentation to media on a tour of the company's operations in Western Australia state.
"From 2008 onwards Rio Tinto is poised for exceptional growth as we reap the rewards of investment in exploration, resources, infrastructure, technology and people," Albanese said in the presentation.
Rio Tinto, based in the UK and listed on both the London and Australian stock exchanges, said if the US goes into recession it would reduce Chinese gross domestic product by less than 1 percentage point and that China would still be expected to post growth of 10 per cent.
Albanese said forward prices for iron ore and aluminum are stronger than for oil and nickel.
Rio Tinto Friday also announced pans for automation of its iron ore mining process in Western Australia and said it has signed a deal with Komatsu Ltd for the development of an automated rail system.
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Rio Tinto shares spiked as much as 5 per cent Friday on speculation that rival miner BHP Billiton Ltd. would increase its bid for Rio. Some traders were skeptical of the rumor, which is the latest in a steady stream out of London after Rio rejected the original bid last year.
Later in the afternoon Rio Tinto's shares were at A$121.99, up 2.9 per cent from Thursday's close.
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