Rio Tinto CEO: Has Seen Some Drop Off In Spot LME Prices

CANBERRA, Aug 26, 2008 (Dow Jones Commodities News via Comtex) -- Rio Tinto Ltd. (RTP) Chief Executive Tom Albanese said Wednesday the mining giant has noted some drop-off in spot commodity prices, although key commodities such as aluminum and copper are still trading above January levels. "I think it's important to recognize that even though we've seen a drop off in some of the LME prices, the ones that are important for Rio Tinto, notably aluminum and copper, the current prices are higher than they were in January this year," Albanese told CNBC. "There is no question a level of anxiety (is) reinforcing the volatility in those traded metals. I'd say that we've seen more movements in some of the spot LME metals than the forward prices," he said. Albanese's comments come as a pullback in commodity prices and slowing growth in China in the second quarter have prompted some commentators to ask how much longer the diversified miners can continue to deliver earnings growth, especially with soaring costs taking their toll. Rio Tinto Tuesday reported a more than doubling in net profit for the first half ended June 30, 2008, to US$6.91 billion as the global miner reaped the benefit of buoyant commodity prices. The company said the result showed it had better earnings momentum than BHP Billiton Ltd.(BHP.AU) and strengthened its defense against the US$160 billion hostile bid from its rival.