Agnico Eagle expands stake in First Nordic to 13%
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Despite order books that are full and robust commodity prices, Rio Tinto says that customer sentiment is now more cautious and physical markets are softer than they were six months ago.
Executives from Rio Tinto, one of the world’s largest diversified miners, voiced their concerns at an investor seminar in London and New York on Tuesday.
The company is finding that customers are concerned over the health of the OECD economies and persistent volatility in financial markets.
Rio Tinto chief executive Tom Albanese said “We’ve been saying for quite some time that we expected to see patterns of increased price volatility amidst turbulent financial markets and that scenario is playing out.
“Our order books are full and pricing is strong, but it is noticeable that markets are somewhat weaker than they were six months ago. We are realistic and well-positioned for any number of scenarios – our high-quality growth programme is in full swing to capture the expected increases in longer-term demand, and our balance sheet is very strong and well able to withstand any near-term decline.
“Our long-term view of demand growth is unchanged. As the metal-hungry developing economies grow, demand for copper, aluminium and iron ore will double over 15 to 20 years.
“But challenges on the supply side are limiting the speed of new supply to market. Project finance is tight because of the current market jitters. Permitting delays, labour and equipment shortages, and technically-challenging ore bodies are all contributing factors.
