Audio available:

http://www.melbourneminingclub.com/attachments/0000/0030/21008_Tom_Albanese.mp3   

2nd October, 2008
Tom Albanese - Chief Executive Rio Tinto
Topic: Consolidation and Diversity - Resources in the 21st Century

A capacity crowd of over 700 gathered in Melbourne’s Town Hall not solely to hear Mr Albanese’s views on the pre-published topic but more likely were there to gauge insight into the current $US115 billion hostile takeover bid he faces from BHP Billiton.

Albanese is of the believe that despite mining stocks being badly affected by fears of a global slowdown, the China growth story was still in tact and would outlast cyclical impacts from mature economies. “The outlook remains that constrained supply conditions and firm demand from China and other developing countries should establish the basis for higher-than-average prices though 2009,“ he said.

China was simply “pausing for breath” and whilst Rio Tinto expects the Asian giant’s gross domestic product growth to slow to 9% in 2009 from 10% in 2008, this did not alter his view that the takeover offer by his Australian rival was pitched too low.

All in all this presentation, by one of the world's mining heavyweights, certainly made it clear that his company had a prosperous future ahead of it and wasn’t going to be gobbled up by anyone, anytime soon without one hell of a fight!