Sydney, 28 November 2011

At an investor seminar in Sydney today (taking an in-depth look at its Iron Ore and Aluminium product groups) Rio Tinto chief executive Tom Albanese said “Rio Tinto continues to be well positioned in current markets. Our cash flow generation remains high and we are selling everything we produce.

“However, continuing stresses in the Eurozone and a weaker outlook for the US economy are inevitably affecting customer sentiment, which has become more negative in recent months. For the near term I am concerned about the general softening of prices when we continue to see cost escalation and strong currencies in Australia and Canada.

“But while there are signs of nervousness, we believe the impact of current economic concerns on our business is manageable, unless financial markets substantially deteriorate.

“The longer-term demand picture remains positive and we would expect to see additional supply constraints as a consequence of current financial uncertainty. The China growth story has a long way to run and, by utilising our strong balance sheet, we continue to invest throughout the cycle in high-quality growth options to meet this future demand.”

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