Rio Tinto (RIO) Says Ore Supplies to Tighten on Japanese Demand

Mining giant Rio Tinto (NYSE:RIO) says iron ore supplies are sure to tightened as a result of the rebuilding effort in Japan when it begins.

Also noted was the ability of the miners, including BHP Billiton (NYSE:BHP) and Vale SA (NYSE:VALE), to acquire enough equipment to ramp up production to meet the growing demand.

Sam Walsh, Rio Tinto's iron ore division chief said, "The impact of the Japanese earthquake and tsunami have been many and diverse and they affect us. Some steel mills have suspended operations and suppliers of heavy equipment, such as Hitachi, have been impacted."

"There is a large reconstruction ahead, the magnitude of which is only just being realized," Walsh added.

Demand for iron ore and steel is expected to rebound when Japan begins rebuilding everything from homes to power plants and analysts say Japan's steel capacity, at more than 130 million tons, will be able to support the reconstruction.

Rio Tinto closed Tuesday at $66.13, falling $0.62, or 0.93 percent.