Rio Tinto only has eyes for smaller deals, says Andrew Burrell From: The Australian May 05, 2011 12:25PM Increase Text SizeDecrease Text SizePrintEmail Share Add to DiggAdd to del.icio.usAdd to FacebookAdd to KwoffAdd to MyspaceAdd to NewsvineWhat are these?Rio weathering volatile marketsWatchClose Rio weathering volatile marketsRio Tinto chief executive Tom Albanese says the company is benefiting from volatile markets. Sky News5 May 2011 CloseAdvertisement Replay: Rio weathering volatile markets Share this video Video Suggestions: Watch More Video Share: Rio weathering volatile marketsPostEmailLinkEmbedPost to SiteFacebookTwitterMyspaceDeliciousFavoritesGoogleDiggStumbleUponMore servicesEmailEmail To:.Your Email:.Message:.SendURL LinkEmbed Codereturn to videoYour video will play following this advertisement Play0:00 / 0:47ScrubbermuteScrubber ShareFullscreen.GLOBAL mining giant Rio Tinto has a $13 billion warchest and is continuing to weigh up tier-one acquisitions after its $3.9 billion takeover of Riversdale Mining, says chairman Jan du Plessis. Mr du Plessis told shareholders at the group?s annual meeting in Perth today Rio?s focus would remain on organic growth but it would continue to invest in ?carefully targeted? small to medium-sized acquisitions.
?Our recent successful achievement of majority control of Riversdale Mining, the Australian-listed company, with strategic coal interest in Mozambique, is a good example of this,? he said.
Mr du Plessis told shareholders the outlook for Rio was strong but he warned global financial markets remained fragile.
?Persistent economic and financial imbalances continue to pose risks,? he said
Start of sidebar. Skip to end of sidebar. Related CoverageCHAIRMAN: No armchair ride with Rio MATTHEW STEVENS: Pilbara rail battle over VIDEO: Rio weathering volatile markets .End of sidebar. Return to start of sidebar.
?Recent uncertainty in the markets, turmoil in the Middle East, problems with the Euro zone and other recent incidents are all bearing out this view.
?However, our pursuit of operational excellence and our strong balance sheet put us in a positive position to weather this short-term volatility.
?Looking further ahead, our long-term growth fundamentals are strong. The populous parts of the world will continue to industrialise and urbanise.
?We are well placed to supply this increase in demand for metals and minerals to meet their rising infrastructure and consumption needs.?
Chief executive Tom Albanese told the meeting the market for iron would remain tight in the short to medium term, with strong prices driven by delays to fresh supply and continued high demand.
Japanese demand for iron ore would be largely unaffected by the country?s recent earthquake disaster, he said, noting demand may even increase with reconstruction efforts.
However, Mr Albanese said the nuclear power crisis in Japan had cast doubt on the uranium market and the situation was of ?great concern?.
He said Rio Tinto believed nuclear power would remain a core element of the world?s energy mix especially after carbon pricing was introduced.
?That said, it will take longer and be more difficult to develop new nuclear power facilities in many parts of the world,? he said.
Mr Albanese said he was ?very pleased? with yesterday?s Federal Court decision that rejected Fortescue Metals Group?s bid to gain access to Rio?s Hamersley rail line in the Pilbara.
?This is good news for our operational efficiency and our plans to significantly increase the capacity of our integrated mine, rail and port network,? he said.
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