Asia proves Rio profitable

Asia proves Rio profitable

Rio Tinto, the world's second largest diversified mining company, reported robust profits on the back of strong Asian demand for steel-making raw materials like iron ore and coking coal. Steel hungry nations like China, Japan and India helped Rio post an 87% rise in profits to $2.8 billion. The news will likely get even better for Rio in 2005, as raw material prices, especially iron ore, are expected to soar well beyond 2004 levels. Right now Rio and many other mining companies are keeping a close eye on Brazil's largest iron ore producer, CVRD. The company had been suggesting that it would raise its iron ore prices by nearly 90% in 2005. If CVRD carries through on its promise, it is a safe bet that other mining companies will follow suit. Rio Tinto produces aluminum, copper, diamonds, coal, uranium, gold, industrial minerals and iron ore. It is a global company with a significant presence in Australia and North America.