Reuters has reported that the world’s number two iron ore producer Rio Tinto Ltd
(ASX:RIO) says it sees strong demand for iron ore continuing into next year and that the current system of pricing iron ore on a quarterly basis is working well.
Miners and steelmakers continue to improve the quarterly pricing system or iron ore which was introduced in April and signalled the demise of the annually fixed-price deals that cost miners a fortune.
Last month the global miner approved a $3.1 billion iron ore expansion in Western Australia’s Pilbara region.
Since July 2010, Rio Tinto has announced $6 billion of new investment in its Pilbara operations, defying industry concerns over Australia’s mining tax.
For the half year ended 30 June 2010, Rio Tinto reported a net profit of over $7.3 billion.
