Rio Tinto Group, the world's third-largest mining company, may pursue additional joint ventures with China's state-owned companies as demand for raw materials rises.
Opportunities exist for cooperation in a range of areas, Chief Executive Officer Tom Albanese told reporters on Saturday in Beijing, without giving details. He attended a seminar organized by the Development Research Center of the State Council.
China's economy grew more than 11 percent for the fourth straight quarter in the three months ended December 31, supporting global growth and demand for iron ore, copper and aluminum as a recession looms in the United States. Rio is boosting production of commodities to meet rising demand, Bloomberg News said.
"There are opportunities for cooperation on a joint venture basis, or something equivalent to that, with China," Albanese said. China's state-owned enterprises would be "very much in that picture," he said.
Rio Tinto already has a joint venture with Baosteel Group Corp, China's largest mill, in Western Australia state and is a partner with Sinosteel Corp in the Channar project, also in north-western Australia.
Rio and rival BHP Billiton Ltd are demanding higher iron ore prices for annual contracts starting April 1 that would beat a 71-percent jump won by Cia. Vale do Rio Doce.
The firm was prepared to wait for Chinese steel mills to agree to the higher increase, Sam Walsh, chief executive officer of Rio Tinto Iron Ore, said in Beijing on Saturday.
Rio and BHP, which account for half of iron ore sales in Asia, are increasing cash market sales to benefit from higher prices and want to move away from the benchmark contract system.
Rio sold iron ore on the spot market for US$190 a metric ton in December, more than twice contract prices. The firm plans to triple iron ore sales in the cash market to 15 million tons a year, up from 4.5 million tons in 2007.
(Shanghai Daily March 24, 2008)
