THE global economy will regain the strength needed to support new mining projects by 2011, according to Rio Tinto chief executive, Tom Albanese.
While a slight recovery in the mining market has been recorded in recent weeks, Albanese says the trends “should not be an indication of a broader trend” at this point in time”.
"It is still too early to say there is a change in economic conditions,” he said.
Rio is set to scale back a number of its coal, aluminum and iron ore projects as the global resources sector takes a blow amid the financial crisis.
However, experts say the cyclical nature of the mining industry is “promising”, and predict it will bounce back in the near future.
Rio will update the market on a portfolio-wide spending review in February 2009.
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