Rio Tinto Group, a British-Australian multinational metals and mining corporation with headquarters in London, in the United Kingdom, and a management office in Melbourne, Australia, reports that it has got record third-quarter iron ore and power station coal output. Thus, with the record production it has raised its full-year copper forecast and in yesterday’s trading it gained +0.74 (+1.50%).
This is happening amidst the increased requirement for commodities from China. Rio Tinto Group says that iron ore production was 53.4 million metric tons in the three months to Sept. 30. The company says that it was 52.6 million tons a year earlier and above than the expected. Nonetheless, China, Rio’s biggest customer needs iron ore in great quantities and that is good for it.
Earlier China used to import a lot of iron ore from India which was later on scrapped by the Supreme Court of India after allegations of illegal coal mining came. Now that the country has lost its cheap source for iron ore, it is eyeing to new producers like Australia. Moreover, as China is showing signs of rebound after a two-quarter slowdown, it is good news for Rio Tinto Group.
Cashing in the opportunity to make profits as demand for iron ore is increasing in China, Australia, the largest iron ore exporter, recently raised its price estimates. Rio Tinto Group which was founded in 1873, when a multinational consortium of investors purchased a mine complex on the Rio tinto river, in Huelva, Spain, produces commodities like aluminum, iron ore, copper, uranium, coal, and diamonds.
China is the biggest customer for Rio Tinto Group which buys iron ore and copper ore from it. Apart from iron ore, the company also produces record copper ore and according to its report it produced 162,300 tons of mined copper in the quarter, up 23 percent on a year earlier. Rio also boosted its 2013 refined copper output forecast 17 percent to 270,000 tons.
Rio Tinto Group which produces other metals and minerals as byproducts from the processing of its main resources such as gold, silver, molybdenum, sulphuric acid, nickel, potash, lead, and zinc, etc., hopes that the next year will be better than the current year. Controlling gross assets of $81 billion in value across the globe, with main concentrations in Australia, the company is optimistic about the Chinese economy.
To contact the reporter of this story: Jonathan Millet at email@example.com