Rio Tinto Limited (ASX:RIO) says its confidence in the outlook for commodities demand has grown over the past six months, but cautioned that risks remain.
Notes from the global miner’s annual general meeting show Rio maintains a strong outlook for commodities over the longer term, underpinned by the expectation demand for many of its products could double over the next 20 years.
However the miner has also warned it continues to be impacted by the industry wide problem of increasing costs and that the risk of contagion in Europe continues to linger.
Rio’s chairman says the world continues to face considerable uncertainty which the company believes will contribute to ongoing volatility.
Rio Tinto generated a net profit of $6.7 billion the 2011 financial year.
