Rio Tinto Plans To Double Aust Coal Output
Illawarra Mercury
Saturday July 26, 2008
RIO Tinto Ltd, the focus of a $148.18 billion proposed takeover from BHP Billiton Ltd, has unveiled ambitious plans to double its Australian thermal coal output and substantially lift uranium production.
The company has set itself a target of lifting output for thermal coal - used as fuel for power stations - to 49.2 million tonnes a year by 2015, subject to infrastructure expansions in Queensland and NSW. Rio Tinto has also flagged plans to lift the production of the steel-making ingredient coking coal to 15.2 million tonnes by 2015. "Coal is experiencing significant global growth, there is a favourable price outlook for both thermal and coking coal," Rio Tinto coal managing director Hubie van Dalsen said. Mining companies are attempting to expand production amid seven years of commodity price gains, underpinned by demand from China and other developing nations. Shares in Rio Tinto dipped $1.40, or 1.22 per cent to close at $113.80, while BHP Billiton fell 63?, or 1.68 per cent to $36.92. Rio Tinto, the world's second largest uranium producer, also flagged plans to almost double output from the Rossing uranium mine in Namibia to 3810 tonnes a year by 2012. Rio Tinto energy chief executive Preston Chiaro told the briefing that power demand globally would grow by 3.7 per cent a year to 2020, with China accounting for 44 per cent of that demand growth.
© 2008 Illawarra Mercury