Rio Tinto sees growth in China's iron ore demand

China's steel output will increase up to 40 percent from now to 1 billion metric tons by 2030, which will create increasing iron ore demand, said Tom Albanese, chief executive of Rio Tinto Plc, on Sept 14 in Beijing.

He said that even though China's economic growth is slowing down, he expects it to happen in a sustainable way.

"For the iron ore business, we never make decisions based on half-year or one-year market prices. We consider a long-term view, such as five years, or 10 years," he said.

To meet China's demand for iron ore resources, Rio Tinto — the world's third largest miner by market capitalization — plans to invest $16 billion this year globally mainly in its mining businesses, which include iron ore, copper, coal and aluminum.

China's economic development in the last 10 years was too fast and not sustainable. In the next 10 years, the country's growth will slow down, but in a more sustainable way, he added.

Imported iron ore prices have been falling dramatically recently, which resulted in less investment in commodities and some downsizing plans in the mining industry.

However, Albanese said that Rio Tinto has the lowest costs, so it still can maintain its profitability during tough times.