Morning:
9°c
Mining giant Rio Tinto today raised its forecast for total iron ore production by as much as 7.5%, as it reported a record third-quarter and said demand from China is still running at a strong rate.
“We are seeing early signs of recovery in some of our key markets, although we remain cautious about the near-term outlook,” said Rio's chief executive Tom Albanese.
“Our businesses continue to operate efficiently; iron ore production set a new quarterly record, with shipments to China maintained at high levels.”
In the last three months, Rio's iron ore production was up 12% on a year earlier at 47.5 million tonnes, and the group now expects to produce between 210 million and 215 million tonnes from its mines in Australia, Canada and Brazil during the whole of this year.
Earlier in the year Rio accepted price cuts of between 33% and 44% as it looked as though the global recession would last for longer than it has.
Analysts are now forecasting price rises of around 15% in 2010 as both production and demand are ramped up.
Albanese said it was not just iron ore where demand is booming. He said: “We also benefited from higher, third-quarter production at all of our copper operations compared with last year.
“Cost reductions continue apace and we have made considerable progress on divestments this quarter enabling us to further reduce net debt.”
