Rio Tinto
(ASX:RIO) has given a very positive prediction for future demand for aluminium, iron ore and copper over the next 15 years.
Rio’s CFO Guy Elliott has told an investment forum that strong economic growth in China and India is likely to lead to a doubling in global demand for a number of key commodities in the long-term.
Elliott said that demand will be so strong that it will require a huge supply response, which is likely to elevate prices.
However he admitted that short-term results were more difficult to gauge because of concerns over government stimulus packages and speculative activity linked to low interest rates.
Rio Tinto’s 2009 net profit came in at $5.3 billion.
