Rio’s Walsh Has Hope of ‘V-Shape’ Recovery in China (Update1)

May 26 (Bloomberg) -- Rio Tinto Group, the world’s third- largest mining company, is hopeful of a “v-shape” recovery in China, its head of iron ore Sam Walsh said. “What is unshakeable is our belief that China and India and the other emerging economies will be the key engines of any return to world growth and commodity demand growth,” Walsh said at a resources industry presentation in Canberra today. China’s economy is operating better than expected, according to the nation’s State Council. The “worst is over” in demand for raw materials and prices for base metals may have bottomed, Goldman Sachs JBWere Pty said in a report yesterday. “We are ready to expand again,” when there is a sustained recovery in metals demand, Walsh said. “Signs of improvement are present in recent data from China and such improvements continue the traditional recovery in exports and housing.” Rio shares fell 0.1 percent to A$64 on the Australian stock exchange at 10:07 a.m. in Sydney. London-based Rio said this month it remains committed to a proposed $19.5 billion investment deal with Aluminum Corp. of China. The company has agreed to sell $7.2 billion of convertible bonds and stakes in projects worth $12.3 billion to Chinalco.