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Rio flags rethink as China slows
Bill Condie3 Nov 2008
Rio Tinto chief executive Tom Albanese says the economic slowdown in China is quickening and heralded lower demand until at least next year.
The world's mining giants are reviewing their production as signs of a global recession mount. Even booming China has seen its economy slow and demand for steel fall.
Rio's rival iron-ore producer, Brazil's Companhia Vale do Rio Doce, recently announced it would cut output. But BHP Billiton, which is making a $76.8 billion (£47.2 billion) takeover bid for Rio, today said it plans to increase output to 300 million tons by 2015. It produced 122 million tons last year.
Rio still has some $9 billion in spending on new mines and expansions in the pipeline. "We want to tailor our expected delivery of those projects with when we see demand picking up," Albanese said.
European regulators are this week expected to threaten to stop BHP's proposed takeover of Rio on competition concerns.
