A reclaimer at the ore stockpile at the BHP Jimblebar facility in the Pilbara region of Western Australia.Credit:Tony McDonough
Rio Tinto this week reported a 33 per cent fall in underlying half-year profit and slashed its interim dividend by more than analysts had expected.
However,Stausholm expressed confidence in Beijing’s ability to navigate the challenges that the Chinese economy was facing throughout the rest of the year,and in the outlook for iron ore demand.
“I am fairly optimistic,” he said.
“Our experience with China is if things are going less well,the Chinese have a quite impressive ability to also manage the economy.”
Beijing has not officially confirmed whether it will unveil aggressive new stimulus measures,but has said it will roll out policies designed to lift consumer spending and boost growth after posting quarterly gross domestic product growth of 6.3 per cent,missing expectations of 7.3 per cent
Stausholm’s optimistic comments differ from the views of some other global mining leaders,who have become increasingly worried that China’s recovery is losing momentum and diminishing the prospect of a near-term uplift in prices for commodities including iron ore,copper and coal.
Iron ore – the raw material processed in steel-making furnaces to churn out molten pig iron – is Rio Tinto’s biggest earner and one of Australia’s most lucrative commodities,raking in export earnings of more than $120 billion in the past financial year alone.