UPDATE:Rio Tinto Says Strength Of Economic Recovery Uncertain
September 24 2009 - 7:51AM
Dow Jones News
Anglo-Australian miner Rio Tinto PLC (RTP) Thursday said the
strength and durability of a global economic recovery remains
uncertain, though current market conditions are a just a "blip"
against long-term demand expectations for commodities.
"Ongoing development in emerging markets will drive metals
demand," Rio Chief Financial Officer Guy Elliott said in a
presentation posted to the company's Web site.
Already, China's stimulus spending, loan growth and restocking
of commodities has provided the initial basis for a recovery in
demand, Elliott said.
But he cautioned that the market "could see some 'pay-back' for
this in coming months" if a slowdown in China isn't offset by a
resumption in growth among developed economies.
Longer-term, the miner expects rising demand for commodities
driven by growth in emerging markets. "Expansion cut-backs during
(the) current downturn will serve to support prices in the
long-term," Elliott said.
Elliott also highlighted Rio's recent $15.2 billion rights issue
and said the company is now focused on reducing costs, completing
an iron ore joint venture with BHP Billiton Ltd (BHP) and continued
divestment of assets.
Company Web site: http://www.riotinto.com
-By Jeffrey Sparshott, Dow Jones Newswires; +44 (0)207 842 9347;
jeffrey.sparshott@dowjones.com