Company: Rio Tinto Plc

Chinese consumers of thermal coal and iron ore are asking traders to defer cargos and – in some cases – defaulting on their contracts, in the clearest sign yet of the impact of the country’s economic slowdown on the global raw materials markets. The FT reports.

When metals warehouses in top consumer China are so full that workers start stockpiling iron ore in granaries and copper in car parks, you know the global economy could be in trouble.

World No.3 miner Rio Tinto warned on Thursday that rising costs are the key challenge it faces but that would not deter it from expanding its highly profitable iron ore operations in Australia.

China's rising  copper inventories and slowing economic growth is casting a pall over the usually bullish mood at Cesco week in Santiago, the largest annual gathering of the world’s copper miners, traders, consumers and investors. The FT reports.

Global miners BHP Billiton, Vale and Rio Tinto all posted sharp drops in quarterly iron ore production due to bad weather, a factor that has helped support iron ore prices at relatively high levels despite signs of a softening market.

Rio Tinto reported worse falls than expected in iron ore and copper production in the first quarter after it was hit by bad weather, knocking the global miner's shares lower.

Brazil's Vale, the world's No. 2 mining company, expects to win permission "within months" to unload its big, new iron-ore ships at Chinese ports, a move that will help ensure efficient delivery of raw materials to China's growing economy, a senior executive told Reuters.

Rio Tinto has seen "quite a lot" of interest in aluminum operations earmarked for sale last year, despite tough market conditions, and is preparing the estimated $8 billion of assets for a variety of options, including a stock listing.     

Rio Tinto, the world's third-largest miner, effectively invited bids on Tuesday for its diamonds business, on its books at $1.2 billion, and joined rival BHP Billiton in backing away from a business that has lost its sparkle. 

Australia raised its forecast for 2011/12 iron ore exports to a record 473 million tonnes, from a previous projection of 460 million tonnes, reflecting expectations demand from top buyer China will remain strong. 

Stocks finished in negative territory Tuesday amid worries over China's economic outlook and as investors took a breather following the recent market rally.

Stock index futures held their losses Tuesday following a weaker-than-expected housing starts report and as investors seemed to take a breather following a sharp rally in the previous sessions.

Australian iron ore miners, key beneficiaries of China's modern-day industrial revolution, on Tuesday signaled demand growth was finally slowing in response to Beijing's moves to cool its economy.

Australia, one of the world's top mining and agricultural nations, faces a quickening pace of climate change, according to a snapshot of the nation's weather, forcing farmers to alter cropping strategies and miners to cope with more intense floods.

Australian miners are playing down the impact of a new law in Indonesia limiting foreign ownership in mines to no more than 49 percent, even after a senior Indonesian official said the law would apply to all foreign miners.