Coal iron ore price diving is within expectation - Rio Tinto CEO

Rio Tinto CEO Walsh (SamWalsh) recently said that the market should not overreact to the various factors that cause coal iron ore prices to fall. He is full of confidence in the Chinese market and believes that the rapid and steady growth of the Chinese economy will bring about long-term demand for mineral products.

On Friday, Walsh spoke at the launching ceremony of the Copper Processing Coal Processing Center in Brisbane, saying that the decline in the prices of copper and iron ore, and the reduction in China’s steel production, and China’s domestic credit that began to appear six months ago The tightening situation is related.

According to "Australia" quoted him as saying that some people will be surprised at this, but the Chinese government's position on production capacity adjustment is very clear, China's steel production capacity can not reach the outside world had previously expected 80 million tons of steel production. However, it is important that the Chinese market maintains a good growth trend, while the cash cost of iron ore produced by Rio Tinto is only US$20.7 per ton, which is among the lowest among peers.

Last week, iron ore prices hit a new low in 12 months, but on Wednesday they rebounded strongly by 2.4% to reach US$107.4/t. Walsh commented that iron ore prices have regained strength in the past few days, and the final degree of recovery will be determined by the market.

The mining tycoon also indicated to Goncor president Ivan Glasnbrg that the Swiss miner will have to increase his offer to Rio Tinto in its Hunter Valley coal mine merger.

Mr. Glasenberg revealed last week that Rio Tinto and Canon Costrata's coal mine in New South Wales will likely be merged. Negotiations between the two have continued for some time, and the mutual assessment of the operating conditions of the two parties will take some time.

However, there are indications that any conditions offered by Glencore Xstrata are far below what Rio Tinto expects. Walsh said that Rio Tinto's coal mine has a long life and can ensure high quality mining. If anyone intends to provide Rio with a valuable proposal, it is absolutely reasonable.

In addition, Rio Tinto’s Oyu Tolgoi underground copper and gold mine project in Mongolia will face deadlines for the project’s ** deadline at the end of March. Walsh said that Rio Tinto will not rush to act as the deadline expires. Launched an investment plan to promote the restart of the project.