China ‘back in business’ as Rio Tinto operations go full tilt despite coronavirus
Global operations remain in production and are ‘particularly valuable in the current volatile environment’, says Rio boss.
China is back to “business as usual”, according to Rio Tinto boss Jean Sebastien Jacques.
Speaking at Rio’s Australian annual shareholder meeting on Thursday, Mr Jacques said all of the company’s global operations remained in production, despite the impact of the coronavirus, and were “particularly valuable in the current volatile environment.”
Mr Jacques told Rio’s London annual shareholder meeting in April that “our iron ore order books are full”, flagging a return to normality for the company’s key customers, Chinese steel mills.
On Thursday, he said China was back to normal, with Rio’s teams in both Beijing and Shanghai having returned to work.
“We have also connected with our customers in China and it is reassuring to hear it is business as usual for them,” he said.
His comments come as the latest Chinese trade data shows its April to January iron ore imports rose 5.4 per cent to 360 million tonnes, compared with the previous comparable period, underlining the strength of the Australian sector through the coronavirus crisis.
Australian trade data for March, released on Thursday, show the rise in iron ore exports in the period – and the end of the February lockdown in China – helped more than double the month’s trade surplus to a record $10.6bn, with metal ore exports up by a third, or $2.8bn, amplified by a lift in iron ore prices in Australian dollar terms.
Rio chairman Simon Thompson reiterated his calls for a green technology-led recovery from the coronavirus crisis, telling shareholders government’s had made a good start in dealing with the crisis, but should think to the future when economic recovery plans are shaped.
“The unprecedented social and economic challenges that we currently face present a unique opportunity, for governments, communities, unions, civil society and business to work together – as we have done so effectively during the crisis – not only to restart the economy, but also to redirect it on to a pathway towards a more resilient and sustainable future. By investing in the new technologies and skills that we need to build sustainable economic prosperity,” he said.
“We continue to engage with governments, business, investors and civil society organisations, around the world, on the policy measures required to accelerate the energy transition, by providing incentives for business to invest in new low-carbon technology, particularly in ‘hard-to-abate’ sectors, such as steelmaking and aluminium.”
On Wednesday, the Rio chairman put his signature on a call from the Rio-backed Energy Transitions Committee for a “massive” wave of green energy-focused stimulus measures to help global economies out of the coronavirus crisis.
The group, a coalition of 40 global businesses including energy majors such as BP and Shell, called on governments to support “a massive wave of investments in renewable electricity” and other low-carbon energy solutions when devising plans for the economic recovery from the COVID-19 pandemic.
In a paper released on Wednesday, the ETC said global governments should favour measures that targeted investment in renewable energy, the transition to electric cars and the “transition of the fossil fuels industry” as they looked at stimulus spending to boost economies.
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