China’s urbanisation rate is still only 45 per cent, with 50,000 new skyscrapers – we believe – needed by 2025. This urbanisation of the rural population is the largest peacetime mass migration in the history of the world. But we should not forget that we have India, Brazil and many other countries following this development pathway. While growth in China may eventually moderate, other countries will take up the slack. Rio Tinto CEO Tom Albanese – November 3, 2010
Global Resources Distribution: Strategic Options for Resources Investment
Speaker: Tom Albanese, Chief Executive Officer
Thank you for your welcome. I am very happy to be back in China my eighth visit this year, and it is an honour to speak here today.
I would like to take the opportunity to talk about future developments and supply challenges for major global industrial commodities and China’s role within this. In addition, I plan to cover the important role technology and innovation will play in the future of the mining and minerals sector.
Global demand for minerals
Let me now give an overview of global minerals demand and how that affects both our business and the industry. Since the industrial revolution, production and urbanisation has spread progressively around the world. The global consumption of minerals has grown in support of this economic transformation.
Over the last hundred years, we’ve seen average annual growth in global minerals demand of something like 3.5 per cent – roughly equivalent to a doubling of demand every 20 years. In particular, demand growth has risen dramatically for aluminium.
This trend suggests that over the next 20 years we expect to see an extra 3 billion people with incomes reaching $15,000. In contrast, it took 200 years for the first billion people to reach this goal. Substantial quantities of minerals will be needed to achieve such a transformation in living standards. Read the rest of this entry »
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