Wires

Rio Tinto sees copper growth, "more cautious" on outlook

LONDON, Oct 9 (Reuters) - Rio Tinto said on Tuesdayit saw production growth ahead for its copper arm and remained"optimistic" on the outcome of talks with China on a power dealfor its key Oyu Tolgoi copper-gold project, but the miner warnedit was cautious on the broader economic outlook.

Rio, in a statement ahead of a presentation on its copperbusiness, said it expects copper production to increase from2013 thanks to improving grades at existing mines and the startof production at Oyu Tolgoi in Mongolia. It expects a cumulativeannual growth rate of 13 percent from 2011 to 2015.

But the global miner also warned the wider economic pictureremained uncertain and said it would continue to cut costs.

"Significant stimulus efforts have been announced in China,the U.S. and Europe, but it's uncertain exactly when we will seethe impact of these on our markets," Rio Tinto Chief ExecutiveTom Albanese said.

"Given this, and the considerable price fluctuations inrecent times, we are somewhat more cautious on the outlook overthe next few quarters."

(Reporting by Clara Ferreira-Marques; editing by Kate Holton)

((clara.ferreira-marques@thomsonreuters.com)(+44 207 5423214)(Reuters Messaging:clara.ferreira-marques.thomsonreuters.com@reuters.net))

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