Source: Bloomberg.com                             Date: 1 September, 2010

Rio Tinto Group, the world’s third-largest mining company, will give priority to boosting output by expanding its own operations rather than through acquisitions, Chief Executive Officer Tom Albanese has said. “I’d like to see higher copper production, that’s why we are investing with” Ivanhoe Mines Ltd. in the Oyu Tolgoi project, Mr.  Albanese said in an interview in Brisbane. “We have other projects around the world. If managers can develop an attractive investment proposition to expand in this market, we’ll certainly look at it. Our first priority is organic growth.”

Growth plans at Rio, BHP Billiton Ltd. and rivals may help to boost industry spending worldwide next year to a record USD113 billion, Sanford C. Bernstein & Co. said last month. Mr. Albanese has pledged to increase spending by 50 percent next year to USD13 billion as he expands coal, copper and iron ore output to meet rebounding global growth.

“I’ve just been through post-earnings meetings with a range of shareholders around the world and I think they recognize the strength of those organic growth opportunities,” he said. “They want to know details of what those are, but there is certainly recognition of the importance of focusing on organic growth.”