World's third-largest miner
Rio Tinto Group expects
iron ore prices to continue increasing as demand surges and suppliers face obstacles as they try to accelerate
production.
Rio Tinto CEO Leigh Clifford said “Demand for
iron ore is extremely strong.” “I think the markets will be strong going forward into 2006.”
Rio Tinto and its rival
BHP Billiton are still in negotiations with Asian steel mills to set the
iron ore prices.
Clifford indicated that miners are trying to increase
production to take advantage of the strong markets. He also added that shortages of skilled workers and machinery still obstruct supply rising at the same pace as demand.