China’s faltering economic recovery and troubles in its property market are intensifying concerns about demand for iron ore,steel-making’s raw material from which Australia’s major miners Rio,BHP and Fortescue Metals Group earned record prices for cargoes in 2021.
China’s market would remain stable and exports were still at historically high levels,Stausholm told a Melbourne Mining Club forum on Tuesday,following comments last week whenhe insisted that Rio,because of its lower operating costs,was in a stronger position than others to ride out any falls in commodity prices from weakening demand in China.
Growth will come from India or South Asia. “Over time it’s bound to happen,” he said.
The mining boss,who travels regularly to China and visits steel producers,said Chinese steelmakers were looking at developing mills in Indonesia or the Middle East.
Under Stausholm’s stewardship,Rio is firmly on a path to diversify its mineral base and dig up and produce “future-facing” elements such as copper and nickel,which are increasingly sought after to accelerate the clean energy transition.
Stausholm said he had avoided making big acquisitions to boost the company’s portfolio,but was focused on smaller acquisitions or joint ventures that would “actually shape the portfolio in a helpful way”.