China's strong demand Rio Tinto raises iron ore production target
The Australian Daily reported that although customers are becoming more cautious due to uncertain global economic prospects, mining giant Rio Tinto still said on November 28 that it has raised its position in Pilbara, a remote area of ​​Australia. ) Iron ore production target.
Rio Tinto said that as an important raw material for steelmaking, the company's iron ore production is expected to reach 353 million tons / year in the first half of 2015, 20 million tons higher than previously forecast, because Rio Tinto and global competitors We are scrambling to increase production capacity to meet China's huge “appetite†for minerals and metals that is strongly supporting rapid industrialization.
Rio Tinto said at an investor seminar in Sydney that iron ore spot prices have fluctuated in recent months but have improved. On the other hand, the prices of copper, coal and other commodities remain high. Currently, only the price of aluminum is much lower than the marginal cost of production across its entire industry.
Rio Tinto’s chief executive, Tom Albanese, said: “The continued pressure on the Eurozone and the weak US economic outlook are inevitably affecting customer sentiment, and the negative sentiment of customers has increased in recent months. The Australian dollar and the Canadian dollar remain strong, and production costs are rising step by step. I am worried about the general trend of weaker prices."
But Ai Boinian pointed out that Rio Tinto's products will not be slow-moving and cash flow will remain high. “The long-term demand outlook is still bright, and China’s economic growth will remain for a long time.†He also revealed that Rio Tinto plans to maintain investment in the business throughout the economic cycle.
Rio Tinto said it is very confident in achieving the iron ore output target after the upgrade. The company predicts that the supply of the iron ore industry must increase by 100 million tons per year in the next eight years to meet demand, although China's steel production is expected to peak in about 2030, while other growth economies such as India. It is also currently on the runway where it is required to take off.
On the other hand, Rio Tinto's Alcan plans to create 40% interest, tax, depreciation and amortization long-term profit margins in 2015 through operational improvements and strategic investments.
Rio Tinto's capital expenditure this year is expected to reach approximately US$12 billion (A$12.39 billion), which is in line with previous expectations and has a further upward trend in 2012.
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