The world has emerged from its recent financial crisis, with global manufacturing output growing by 6.5 percent year-on-year in the first quarter of 2011, a top UN agency said Tuesday.

Growth was driven largely by a 11.5-percent increase in activity in developing countries, with output expanding by 15 percent in China alone, the United Nations Industrial Development Organisation (UNIDO) said in a statement.

By contrast, manufacturing output of industrialised countries rose by 4.4 percent in the period from January to March, with strong growth of 7.1 percent observed in the world's largest manufacturer, the United States.

Major European economies, including France, Germany and Britain "also demonstrated significant growth in manufacturing output."

But other European countries, such as Greece, witnessed a 6.9-percent drop, while Portugal and Spain posted marginal growth of less than 1.0 percent.

In Japan, the full impact of the March 11 tsunami and earthquake was not yet reflected in the first-quarter output data but production still declined by 2.4 percent.

earlier related report
Rio, Chinalco set up exploration tie-up in China
Beijing (AFP) June 1, 2011 - Rio Tinto and Chinalco, China's largest alumina producer, agreed Wednesday on a tie-up to explore copper resources in mineral-hungry China, the Anglo-Australian mining giant said.

The deal comes as relations between Rio and China, its biggest customer, slowly improve after four of its staff were jailed in Shanghai for bribery and stealing commercial secrets last year during tense iron ore pricing talks.

Chinalco will take a 51 percent stake in the joint venture -- Chinalco Rio Tinto Exploration Co. Ltd -- while Rio will hold the rest, the Anglo-Australian firm said.

The agreement to explore for "world-class mineral deposits" is still subject to Chinese regulatory approval and follows the signing of a non-binding memorandum of understanding in December, it said.

"Security of supply of key minerals is, I know, an issue of the highest importance for China," Rio Tinto chief executive Tom Albanese said at a signing ceremony, according to a copy of his speech provided by the company.

"Rio Tinto wishes to be a strategic partner to China in the supply, development and also the discovery of those resources."

Rio will appoint the general manager of the joint venture, which is expected to be based in Beijing, while Chinalco will nominate the chairman, chief financial officer and deputy general manager, the statement said.

Chinalco president Xiong Weiping said in the statement access to resources was "critical" for many major economies and the joint venture with Rio could "potentially create commodity supplies to benefit the global economy".

The joint venture will initially focus on copper exploration but coal and potash resources could be explored "at a later date", the statement said.

Chinalco is seeking to diversify from aluminium into other sectors such as coal, iron ore, rare earths and copper to become a global mining firm.

The case against the Rio staff, which followed the company's decision in 2009 to scrap a tie-up with Chinalco, its shareholder, hurt ties between Beijing and Canberra and stoked concerns among foreign investors about the rule of law in China.

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