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Gearing up for China's growth
China's voracious need for iron ore has been the incentive for the Rio Tinto Group to pour US$1.3bn into port, rail and mine improvements across the Pilbara in Western Australia.

From the air, Western Australia's spectacular Pilbara landscape looks as if it is still slumbering through geological time, but its appearance belies the fact that it is one of the hottest mineral provinces on earth - and we're not just talking degrees Celsius. Within this remote stretch of country, China's voracious need for iron ore has been the incentive for the Rio Tinto Group to pour US$1.25bn into port, rail and mine improvements.

"China's economic development is being driven by the rapid pace of its industrialization, the growing urbanization of the population and a sustained burst of investment from the private business sector," explains Ian Bauert, managing director, Sales, Marketing and New Business, at Rio Tinto Iron Ore.

In 2003, Rio Tinto's Pilbara-based iron ore businesses produced more than 118 million tonnes, up 14 per cent compared to 2002. But in the same year China doubled its investment in new steel mills and iron ore imports went up by a third. "These factors have pushed local steel demand to unprecedented levels, and China has reigned as the world's largest producer and importer of steel in recent years," says Bauert.

Hamersley Iron and Robe River are ideally placed to benefit from the explosive growth in the demand for their product, not least because of their relative proximity to China and the hungry Asian market.



Gearing up for China's growth China's voracious need for iron ore has been the incentive for the Rio Tinto Group to pour US$1.3bn into port, rail and mine improvements across the Pilbara in Western Australia. From the air, Western Australia's spectacular Pilbara landscape looks as if it is still slumbering through geological time, but its appearance belies the fact that it is one of the hottest mineral provinces on earth - and we're not just talking degrees Celsius. Within this remote stretch of country, China's voracious need for iron ore has been the incentive for the Rio Tinto Group to pour US$1.25bn into port, rail and mine improvements. "China's economic development is being driven by the rapid pace of its industrialization, the growing urbanization of the population and a sustained burst of investment from the private business sector," explains Ian Bauert, managing director, Sales, Marketing and New Business, at Rio Tinto Iron Ore. In 2003, Rio Tinto's Pilbara-based iron ore businesses produced more than 118 million tonnes, up 14 per cent compared to 2002. But in the same year China doubled its investment in new steel mills and iron ore imports went up by a third. "These factors have pushed local steel demand to unprecedented levels, and China has reigned as the world's largest producer and importer of steel in recent years," says Bauert. Hamersley Iron and Robe River are ideally placed to benefit from the explosive growth in the demand for their product, not least because of their relative proximity to China and the hungry Asian market.
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Review is published by Rio Tinto, 6 St James' Square, London SW1Y 4LD, England Telephone +44 (0)20 7930 2399 Editor: Cherry DeGeer