Rio’s China sales rocket

Global mining group, Rio Tinto, is predicting that its 2007 sales to China will have increased by around 42.8% year-on-year.

Rio’s China sales stood at $4.062 in 2006, representing 15% of global sales. Last year’s sales are estimated at around $5.8 billion giving China 18% of the group’s total sales volume.

According to Julie Song, chief representative at the group’s Beijing office, the growth was mainly fuelled by Rio’s copper, iron ore, aluminium and energy businesses.

Michael Han, Rio Tinto China chief economist is predicted that China’s gross domestic product is likely to grow around 10% this year, stating; “The Chinese market is still gaining strong growth momentum, largely unaffected by Western markets.”

Last week, Rio published its results for 2007, showing a rise in underlying earnings, to $7.443 billion. The figure represents a 1% increase on 2006 and sets a new record for the group.

Rio has recently rejected the latest and apparently final bid approach from BHP Billiton, after deciding that the offer undervalued the company.