Rio Tinto CFO: Recovery Strong But Short Term Volatility Seen

10th Jun 2010 12:12

LONDON (Dow Jones)--Global diversified miner Rio Tinto PLC (RTP) reiterated that it expects demand recovery in its key commodities to remain strong, but said it was cautious about short-term volatility in prices and demand. Guy Elliot, the chief financial officer for Rio Tinto, said in a presentation here Thursday that, on the one hand, China's economy grew faster than anticipated in the first quarter and demand continues to improve in countries that make up the Organization for Economic Cooperation and Development. But on the other hand, there's concern that China's attempt to cool its real-estate market may be too "aggressive" and stimulus measures implemented last year are coming to an end, he added. Furthermore the impact of sovereign debt concerns, foreign exchange movements and banking liquidity are also putting negative pressure on the recovery outlook, he added. Over the long term, demand is set to continue to grow with India projected to grow at a similar rate to China in coming years. Steel, copper and aluminum consumption per person in India was a 10th of China's consumption per person in 2009, Elliot said. "India's GDP per capita [is] estimated to reach current levels in China in 15 years," he added. Company Website: www.riotinto.com -By Alex MacDonald, Dow Jones Newswires; +44 (0)20 7842 9328; [email protected] (END) Dow Jones Newswires June 10, 2010 07:12 ET (11:12 GMT)