3rd Sep 2015 06:17
LONDON (Alliance News) - Rio Tinto PLC Thursday outlined the next phase of its plans to capitalise on the iron ore market "through a relentless focus on productivity and efficiency, technology, and people development" to drive down costs at its flagship Pilbara iron ore mine in Australia.
"Rio Tinto has demonstrated how the completion of its world-class iron ore expansion project in Western Australia will deliver significant shareholder value as the sector transitions through the ongoing volatility in global commodity markets," it said in a statement.
The FTSE 100-listed miner believes, despite a slowdown in China and considerably lower iron ore prices compared to a year ago, that steel demand across China and the rest of the world will grow at an average of 2.5% per year over the next 15 years.
Iron ore is a key component in the production of steel, which is mainly used in construction.
"This rigorous analysis confirms that Chinese crude steel production is expected to reach around 1.0 billion tonnes by 2030," said the miner.
Away from China, Rio Tinto sees opportunities in other emerging markets and said non-Chinese steel demand is expected to increase by 65% by 2030.
Rio Tinto Technology and Innovation Chief Executive Greg Lilleyman said the company will save around USD200 million a year over the next three years through productivity gains at Pilbara.
"We have spent the past decade building the best iron ore business in the world - a project that has come in on time and below initial cost estimates. We intend to optimise these new assets to deliver maximum value for shareholders and stakeholders as markets transition," added Group Chief Executive Andrew Harding.
By Joshua Warner; [email protected]; @JoshAlliance
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