Rio achieves record tonnages

Rio Tinto mined record tonnages of copper and other industrial minerals in 2007.

The greatest increase was in aluminium output, partly as a result of the group’s acquisition of Alcan in November of last year.

Record levels were also set in gold and refined copper and analysts expect the group to meet profit forecasts of around $7 billion for 2007.

Meanwhile, BHP Billiton continues with its hostile attempt to takeover the company, with BHP chief executive, Marius Kloppers, arguing that a merger with Rio would streamline mining operations at a time of high demand for raw materials.

It could also provide a more efficient supply chain to customers, as many buy from both companies.

Rio rejected a three-for-one share swap proposal, worth around $139 billion, last November.

BHP now has until 6th February to make a formal offer for Rio, according to a deadline imposed by the Takeover Panel.

Rio Tinto’s London shares have fallen this week, along with the rest of the mining sector, on fears of a US recession and its possible impact on metals prices.

However, analysts agree that such an event could be offset by strong demand from China, where consumption is being driven by construction projects rather than metals being used to re-export to markets such as the US.