Anglo-Australian mining company Rio Tinto PLC (RIO), fresh from securing control of coking coal producer Riversdale Mining Ltd. (RIV.AU), has committed itself to further acquisitions in addition to organic growth.

Rio's board has earmarked a further US$13 billion in capital expenditure this year and Chairman Jan du Plessis said the company will also continue to invest in "carefully targeted" small- to medium-sized acquisitions.

"Riversdale Mining, the Australian-listed company with strategic coal interests in Mozambique, is a good example of this," du Plessis said the text of a speech he delivered Thursday to shareholders at the company's annual meeting in London.

The company has said it will invest in and and operate large, long-term mines and its strategy will be driven by the quality of opportunities rather than the choice of commodity.

Chief Executive Tom Albanese, whose speech was also distributed Friday via the Australian securities exchange, said growth was back on the agenda for the mining company. "If 2009 was about stabilization, 2010 was about stating our broader vision of becoming global sector leaders and delivering outstanding results," he said.

The company said Monday its interest in Sydney-based Riversdale had increased to 52.6%, extending the majority position it gained last week versus steel producers Tata Steel Ltd. (500470.BY) of India and Cia. Siderurgica Nacional (SID) of Brazil which together own 47%. Rio's bid for Riversdale, which is due to close April 20, values the coal company at almost US$4 billion.

Riversdale operates a colliery in South Africa and is developing a promising coking coal deposit in neighboring Mozambique. Coking coal is a key raw ingredient in steel, which is in great demand in China and elsewhere.

"We believe Rio Tinto is one of the few companies in the world with the capabilities and values to develop this project quickly and to a world-class standard," Albanese said.

-By Robb M. Stewart, Dow Jones Newswires; +61 3 9292 2094; robb.stewart@dowjones.com
Riversdale Mining (ASX:RIV)
Historical Stock Chart
From May 2024 to Jun 2024 Click Here for more Riversdale Mining Charts.
Riversdale Mining (ASX:RIV)
Historical Stock Chart
From Jun 2023 to Jun 2024 Click Here for more Riversdale Mining Charts.