Rio ships 83 mln tons of iron ore to China in 2008, up 18 pct year-on-year

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Shanghai.  March  17.  INTERFAX-CHINA  -  Rio Tinto, the Australia-based
mining giant,  shipped  a total of 83.38 million tons of iron ore to its
Chinese  customers  in  2008, up 18 percent year-on-year, accounting for
approximately  53  percent  of  its  total  shipments,  according to Rio
Tinto's annual report released on March 17.
Overall,  Rio's  total  shipments  amounted to 157 million tons in 2008,
increasing  by  6.25  percent  year-on-year, thanks to robust demand for
iron ore  during  the  first three quarters of last year. Rio's iron ore
output hit  a  record  high of 153.39 million tons in 2008, growing by 6
percent on an annual basis.
However, its shipments were lower than the planned figure of 190 million
to 195 million  tons, because of a contraction in iron ore demand in the
final quarter  due  to  the  global economic slowdown and in particular,
slower economic growth in China.
Looking  forward to the year ahead, Rio is aware of various risk factors
that may  affect  its  iron  ore operations, in particular the uncertain
market conditions in China.
"As a result of the increasing importance of China as a source of demand
for its products, in particular iron ore, the company has recently been,
and may  continue  to  be,  adversely  affected  by  a  reduction in the
importation  of its products by Chinese customers," according to the Rio
annual report.  Rio  expects  China's  metals demand to rise at a single
digit rate  in  2009, much lower the over 20 percent rate of growth seen
in recent years.
The company added it may not be able to secure high contract prices from
Chinese steel mills for the coming contract year.