Why do they want to drill in Madagascar ?
Charlotte Moore
Thursday August 4, 2005
The Guardian
Miner Rio Tinto said yesterday that it was confident China's demand for copper and steel would continue as it reported profits almost two thirds higher in the first half.
Profits before tax increased by 63% to $3bn (£1.68bn) compared with $1.85bn last year. Full year profits are now expected to exceed $4bn, said analysts. The shares closed up 3.7% at £19.67 - a record high.
Copper and iron ore accounted for 73% of the company's earnings. As China moves from an agrarian to an industrial economy, it now consumes a fifth of the world's supply of copper, using it to build power lines and electronic goods.
The company's chief economist Vivek Tulpulé said: "China is an incredibly rapidly growing economy, still in its early stages and there is a lot of potential for it to grow at between 8% to 10%."
Strong profit growth means Rio Tinto has generated the same level of cash flow in the first half of this year as for the whole of 2001. The firm said it would invest in new mines, increase its dividends and buy back shares.
Finance director Guy Elliott stressed the company's priority is to invest in new mining projects: "The pipeline for organic growth is very strong. We are not on a route that we would have to supplement with acquisitions." He did not rule out a purchase but said it would have to create value.
The company said it would invest $775m to mine titanium dioxide in Madagascar and to upgrade smelting facilities for the material in Canada. Titanium dioxide is a key ingredient in all types of paint - from use in homes to protecting steel oil rigs from rust.
Thursday August 4, 2005
The Guardian
Miner Rio Tinto said yesterday that it was confident China's demand for copper and steel would continue as it reported profits almost two thirds higher in the first half.
Profits before tax increased by 63% to $3bn (£1.68bn) compared with $1.85bn last year. Full year profits are now expected to exceed $4bn, said analysts. The shares closed up 3.7% at £19.67 - a record high.
Copper and iron ore accounted for 73% of the company's earnings. As China moves from an agrarian to an industrial economy, it now consumes a fifth of the world's supply of copper, using it to build power lines and electronic goods.
The company's chief economist Vivek Tulpulé said: "China is an incredibly rapidly growing economy, still in its early stages and there is a lot of potential for it to grow at between 8% to 10%."
Strong profit growth means Rio Tinto has generated the same level of cash flow in the first half of this year as for the whole of 2001. The firm said it would invest in new mines, increase its dividends and buy back shares.
Finance director Guy Elliott stressed the company's priority is to invest in new mining projects: "The pipeline for organic growth is very strong. We are not on a route that we would have to supplement with acquisitions." He did not rule out a purchase but said it would have to create value.
The company said it would invest $775m to mine titanium dioxide in Madagascar and to upgrade smelting facilities for the material in Canada. Titanium dioxide is a key ingredient in all types of paint - from use in homes to protecting steel oil rigs from rust.
posted by Teboka at
5:39 PM
0 Comments:
Post a Comment
<< Home