Rio Tinto CEO: Short-Term Economic Outlook Still A Concern

11th Jun 2010 17:41

By William Horobin Of DOW JONES NEWSWIRES PARIS (Dow Jones)--Mining giant Rio Tinto's (RTP) chief executive Friday said he remains concerned about the economy in the near term as structural defects following the financial crisis continue to work their way through the system, though he sees as positive the economy's medium- and long-term prospects. "We have an intermediate- and long-term outlook that's quite positive because we are looking at steady and strong demand for our products from China," and industrialization and urbanization of other emerging markets such as India and Southeast Asia, CEO Tom Albanese told Dow Jones Newswires. "However, in the nearer term, I am concerned about the structural defects that are still in the world's economy." Albanese said the problems affecting some countries in southern Europe and pressuring the euro are just one example of such short-term concerns. The chief executive said some tightening of China's economic growth is needed, however, to prevent a return to the inflationary pressures that existed in 2007. "I do think that will slow what is a strong economy, but it will still continue to be robust for our business," Albanese said. The CEO also suggested he would like to see Rio Tinto invest more in Africa. "Our total business in Africa is probably less than 5% of all of Rio Tinto," Albanese said. "I would say on balance that we are underinvested in Africa compared to where I'd want to be, given the great potential in Africa." -By William Horobin, Dow Jones Newswires; +33 1 4017 1737; [email protected] (END) Dow Jones Newswires June 11, 2010 12:41 ET (16:41 GMT)