Jean-Sebastien Jacques, chief executive of Rio Tinto (ASX:RIO, said demand for Western Australian mining workers had risen 40 percent and that new projects by large mining companies would spur a sharp rise in labor costs in the region.
Jean-Sebastien Jacques, chief executive of Rio Tinto (ASX:RIO, said demand for Western Australian mining workers had risen 40 percent and that new projects by large mining companies would spur a sharp rise in labor costs in the region.
Jacques's comments came as Rio's shares fell more than 3 percent in London on Wednesday, despite a shareholder return of $7.2 billion, as half-year earnings were slightly lower than expected.
Jacques said in February that a surge in mining profits would inevitably lead to expectations of higher wages as workers seek a "fair distribution of wealth." Since then, BHP Billiton, Fortescue Metals and Rio Tinto have each significantly increased investment in their respective projects. Rio Tinto, for example, expects to invest an additional $2.2 billion in the Koodaideri iron ore project before Christmas.
On Wednesday, the Jacques said the spending would lead to further increases in labor costs.