Rio Tinto Limited
(ASX:RIO) has defended its growing iron ore output amid plunging prices at the Rio Tinto plc AGM in London.
The diversified miner’s CEO Sam Walsh commended Andrew Harding for expanding the company’s iron ore production to 290 million tonnes two months ahead of schedule.
It was argued that with iron ore trading around $50 a tonne that margin maintenance is more important than ever and that being the lowest cost producer is fundamental to business health.
Technological advancements such as driverless trucks were cited as productivity drivers lowering fuel use and increasing safety.
The statement comes amid growing criticism from competitors about the growth in supply of iron ore as well as the announcement of the shutdown of Atlas Iron’s Pilbarra operations.
Rio Tinto reported a net profit of $7.92 billion in the 2014 calendar year.
