Rio Tinto strikes gold

Rio Tinto, the world's third biggest mining group, has reported strong profits growth despite a slump in world metals prices.

The company said pre-tax profits for 2001 excluding one-off costs jumped by 10% on the year to $1.66bn.

Most analysts had predicted profits growth of about 6%.

The Anglo-Australian mining giant said increased sales thanks to major acquisitions last year and beneficial currency fluctuations helped it to overcome a recessionary dip in world metals prices.

Higher coal and iron ore prices also helped to boost the bottom line, Rio said.

The company added that it does not expect an imminent recovery in the global economy.

It also revealed that profits were 28% down on the year when one-off costs, stemming mainly from a write-down of US assets, are included.

Rio Tinto shares closed 0.2% lower on the Sydney Stock Exchange at 38.31 Australian dollars.