Source: Mineweb.com                         Date: 03 December, 2010

Rio Tinto’s copper division head Andrew Harding has told an investors' presentation that Oyu Tolgoi was on track to launch in late 2012, ahead of the so far estimated 2013. In the third quarter this year, Rio produced a record amount of iron ore, but copper output fell 19 percent. It said that copper output would fall 18 percent to 661,000 tons this year, and decline 10 percent next year. The outlook would be bright for its copper unit once the Mongolian project goes on steam.

Rio Tinto is to nearly triple capital spending to USD11 billion next year as it expands lucrative iron ore mines in Australia, where it has found a further 2 billion tons of deposits. Chief Executive Tom Albanese told an investors' presentation high metals prices were generating strong cash flow and Rio might use some of this cash for takeovers. "Of course, that (capex) number excludes any small-to-medium-sized M&A deals that we may choose to execute. We have a number of opportunities being evaluated."