Rio Tinto optimistic on China growth

The nation's efforts to reduce overcapacity in the steel industry will benefit global mining giant Rio Tinto Group Plc and others, rather than hurt their business interests, according to its CEO Jean-Sebastien Jacques.

The industry is undergoing restructuring in the country but the reduction in capacity does not mean a reduction in production, he said.

High quality raw materials are still necessary as the move entails a shift to high quality steel and shutting down of the smaller and more polluting blast furnaces while switching to the newest, largest blast furnaces, he added.