Rio Tinto raises iron ore production targets despite global metal gloomComments Off on Rio Tinto raises iron ore production targets despite global metal gloom
Mining giant Rio Tinto defied falling metal prices and said it would increase iron ore production by as much as 7% this year, taking advantage of its position as the producer with the lowest costs in the world.
It said it had increased production by 11% last year to 340 million tonnes and believed that it would produce and ship 350 million tonnes this year.
“We will continue to focus on disciplined management of costs and capital to maximise cashflow generation throughout 2016,” chief executive Sam Walsh said.
He and all Rio staff have had a pay freeze imposed on them this year as it seeks to cut costs and Walsh warned of a “very sobering outlook”.
The growth targets came even as the world’s steel industry, which depends on iron ore, remains in decline with Tata Steel announcing more than 1000 job cuts in the UK yesterday.
Rio shares, in line with all the major miners, rose sharply today gaining 61.5p, or 4%, to 1694p.