Rio Tinto CEO says consumers boost metals demand when they buy cellphones, cars
Consumers around the world will create long-term demand for key metals such as aluminum as they buy more mobile phones, cars and homes, the head of global miner Rio Tinto said Wednesday. Chief executive Tom Albanese said China, India, Russia and Brazil will help drive growth at Rio Tinto, which owns Canada’s former Alcan aluminum company. “As is the case with other commodities, emerging market demand will drive aluminum consumption going forward,” he told the Board of Trade of Metropolitan Montreal.He expects at least four to five per cent in annual growth in demand for aluminum over the next two decades and credits the “digitalized world” for creating the demand.
“All told, there are some 2.5 billion people out there who want to live like the top half-billion consumers in the world. Who is telling them they can’t have refrigerators, or air conditioning or cars, or mobile phones?” he said.
There will also be a demand for larger living spaces, which also would benefit aluminum, he added.
“People are no longer protected from global information. They know how others live and can live. That stimulates demand for everything else,” Albanese said after his speech.
Albanese said that while the outlook for aluminum is positive, there’s an excess of global supply. Once global economic stimulus packages are no longer in place, there’s also the potential to have both volatility and substantial swings in commodity prices, he added.
He noted the potential for a global copper shortage, but wouldn’t say if Rio Tinto would be interested in acquiring copper mines.
Rio Tinto is a major partner in the development of Ivanhoe Mine’s (TSX:IVN) Oyu Tolgoi copper project in Mongolia.
As for other potential acquisitions, Albanese said he likes the potash sector.
“What I’ve said to geologists is: ‘Go find some postash’ and if we can find through exploration or some greenfield development a postash resource, that would be something I would consider.”
Albanese said he believes Asian steel markets will provide growth for Iron Ore of Canada , of which Rio Tinto owns about 60 per cent.
He also said the company is spending millions to modernize its aluminum smelters in Quebec and Kitimat, B.C.
“All told, there are some 2.5 billion people out there who want to live like the top half-billion consumers in the world. Who is telling them they can’t have refrigerators, or air conditioning or cars, or mobile phones?” he said.
There will also be a demand for larger living spaces, which also would benefit aluminum, he added.
“People are no longer protected from global information. They know how others live and can live. That stimulates demand for everything else,” Albanese said after his speech.
Albanese said that while the outlook for aluminum is positive, there’s an excess of global supply. Once global economic stimulus packages are no longer in place, there’s also the potential to have both volatility and substantial swings in commodity prices, he added.
He noted the potential for a global copper shortage, but wouldn’t say if Rio Tinto would be interested in acquiring copper mines.
Rio Tinto is a major partner in the development of Ivanhoe Mine’s (TSX:IVN) Oyu Tolgoi copper project in Mongolia.
As for other potential acquisitions, Albanese said he likes the potash sector.
“What I’ve said to geologists is: ‘Go find some postash’ and if we can find through exploration or some greenfield development a postash resource, that would be something I would consider.”
Albanese said he believes Asian steel markets will provide growth for Iron Ore of Canada , of which Rio Tinto owns about 60 per cent.
He also said the company is spending millions to modernize its aluminum smelters in Quebec and Kitimat, B.C.
Comments
Post a Comment