Global miner Rio Tinto Ltd
(ASX:RIO) says the long term outlook for aluminium remains robust however it remains cautious in the short term.
The mining giant also says cash preservation remains a key priority for its aluminium business.
In an analyst presentation, Rio’s aluminium division says that the long term story for aluminium continues to be attractive with 4.1 per cent growth in aluminium expected over the next two decades.
Rio says signs of recovery for end users of aluminium remained mixed, however prices continued to rise due to increasing optimism about global growth, depreciation of the US dollar and China becoming a net imported of unwrought aluminium.
Rio Tinto Alcan chief executive Jacynthe Cote says the company’s aluminium business has been earnings before interest, tax, depreciation and amortisation positive in the first half and its break even price for aluminium was US$1350 a tonne at the end of the second quarter.
Rio Tinto’s 2008 net profit more than halved from the year before.
