Rio Tinto Plans to Get the Best Out of the Aluminium Market

Submitted by Jim Thesiger on 25 January, 2010 - 05:14

Jacynthe Cote, the chief executive of the Alcan division of Rio Tinto (RIO) stated that the consumption of aluminium is likely to get back to the pre-recession position within next three years. She added that the sector has great growth potentials and Rio Tinto was positioned strongly to deal with the impact of the recession in the aluminium sector. It is to be mentioned that Rio Tinto is one of the key players in the mining industry which is listed in both London and Australia. The major products of the company includes: iron ore, aluminium, coal, copper, energy products, gold, various industrial minerals and diamonds.

While giving her speech in Quebec, Canada Mrs. Cote said, industrialisation and urbanisation is likely to play key role in the aluminium market as demand of aluminium is expected to grow in the emerging countries. In addition to that, demand for aluminium may also rise in the industrialised nations by as much as 2 to 3 percent per year. She stated that her company is willing to get the best out of the market as it was confident about the outlook for demand of aluminium in the long run.

The Alcan chief executive also added that there was scope to be hopeful about the outlook for growth in the international arena. However, it is still to be seen how much of the demand of aluminium can be recovered. The Governments may need to think of providing another economic stimulus and should carefully determine the timeline for raising the interest rates as well. She urged everyone to be patient and remain positive about the future. It is to be mentioned that the prices of aluminium went up by 68 percent on the London metal Exchange in last 12 months and with the increasing Chinese demand, the largest aluminium producer of the United States- Alcoa is expecting to see the demand for Aluminium to go up by 10 percent this year.