Iron ore and expanded Cape Lambert to underpin Rio Tinto’s future

<p>With a record growth in earnings last year and a future supported by iron ore, mining giant Rio Tinto said yesterday (Thursday, February 1) it would spend US$456m ($589m) on a US$860m expansion of Cape Lambert port in the Pilbara.</p> <p>Out-going chief executive Leigh Clifford said: "With substantial and increasing resources of iron ore, as well as an established infrastructure and market presence, we are committed to this high margin business, which has an excellent long-term growth outlook."</p> <p>Net earnings were US$7.44bn, 43% above 2005’s result.</p> <p>This could have been higher but for problems, including infrastructure bottlenecks, affecting Coal and Allied and Energy Resources Australia.</p> <p>Rio Tinto chairman Paul Skinner was bullish about the global commodities market.</p> <p>"We continue to view the overall outlook for commodities as positive, with prices remaining well above their long run averages in 2007," he said.</p> <p>But there were clouds on the horizon.</p> <p>"Looking to 2007, there are a number of uncertainties in the global economy, not least the direction of inflation and interest rates in major economies," Mr Skinner said.</p> <p>&#8220We expect some moderation of global economic growth, although confidence in Japan and Europe is increasing.&#8221</p> <p>The expansion of Cape Lambert will lift annual capacity 25m tonnes (mt) to 80mt.</p> <p>&#8220Following completion of the expansion scheduled for the fourth quarter of 2008, Rio Tinto’s mine, rail and port capacity in the Pilbara will be matched, and capable of exporting 220mt per year,&#8221 the company said.</p> <br />