Rio Tinto Q4 iron ore output soars on robust China demand

Rio Tinto Group, the world's third largest mining company, said fourth-quarter iron ore output rose 49 percent because of demand from China, boosting prospects for producers in annual price talks.

Production was 47.2 million tons in the three months ended Dec 31, from 31.8 million tons a year earlier, London-based Rio said yesterday in a statement. Total full-year output was more than 217 million tons, beating the company's forecast.

Sales from Rio's iron ore mines in Australia hit a quarterly and annual record and the company said yesterday there's continuing strong growth in demand. Deutsche Bank AG this week raised its earnings estimate for Rio's 2010 profit by 39 percent after increasing its iron ore contract price forecast.