Interfax China reported that Rio Tinto, the Australia-based mining giant, shipped a total of 83.38 million tonnes of iron ore to its Chinese customers in 2008 up by 18%YoY accounting for approximately 53% of its total shipments.

Overall, Rio's total shipments amounted to 157 million tonnes in 2008, increasing by 6.25%YoY thanks to robust demand for iron ore during the first three quarters of last year. Rio's iron ore output hit a record high of 153.39 million tonnes in 2008, growing by 6% on an annual basis. However, its shipments were lower than the planned figure of 190 million to 195 million tons, because of a contraction in iron ore demand in the final quarter due to the global economic slowdown and in particular, slower economic growth in China.

Looking forward to the year ahead, Rio is aware of various risk factors that may affect its iron ore operations, in particular the uncertain market conditions in China.

According to the Rio annual report "As a result of the increasing importance of China as a source of demand for its products, in particular iron ore, the company has recently been, and may continue to be, adversely affected by a reduction in the importation of its products by Chinese customers. Rio expects China's metals demand to rise at a single digit rate in 2009, much lower the over 20% rate of growth seen in recent years.”

The company added it may not be able to secure high contract prices from Chinese steel mills for the coming contract year.

(Sourced from Interfax China)