Rio Tinto expects iron ore prices to increase

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.