Rio Tinto Group reports earnings surge

Chief executive of Rio Tinto Tom Albanese poses for photographers in central London, on Feb. 10, 2011. Global mining giant Rio Tinto Thursday said its annual profits had nearly trebled to $14.3 billion on the back of soaring commodities prices and strong growth in emerging markets. Photograph by: BEN STANSALL, AFP/Getty Images

Rio Tinto Group, the world's third-biggest mining company and owner of Canada's Alcan, Thursday posted 2010 earnings of $14.3 billion U.S., up almost 200 per cent from 2009, saying it is entering a "significant growth phase." It will buy back $5 billion of its shares by the end of 2012.

The earnings surge came mainly from strong demand and higher prices for iron ore and coal. CEO Tom Albanese said "growth in emerging markets and supply constraints mean the general market and pricing outlook for commodities remains positive, though with high risk."

Rio Tinto produces iron ore, thermal coal for power generation and metallurgical coal for steelmaking in Australia and exports to South Korea, India, Taiwan and China. It also mines base metals and diamonds in North America and elsewhere and is Canada's biggest aluminum producer.

Rio Tinto benefited last year from the broad global commodities boom, with higher prices for copper, gold and molybdenum and aluminum, besides iron ore and coal.

It reduced debt to $4.3 billion U.S. as of Dec. 31 from $19 billion a year earlier. Rio Tinto's debt was swollen by the $38-billion takeover of Alcan in 2007 but profitability was hit badly by the 2008 global financial crisis.

With rising fortunes in 2010, it has revived major Canadian aluminum and iron ore projects delayed by the recession, besides stepping up output of iron ore and coal in Australia.

 （Source From：www.montrealgazette.com）