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Why the Rio Tinto Limited share price is heading down

Shares in minerals and metals giant Rio Tinto Limited (ASX: RIO) entered February at $77.10 on a slope of decline from the miner’s January top of $81.80 after spending much of December climbing.

Rio boasts significant assets in aluminium, copper, coal, diamonds and iron ore commodities, many of which have enjoyed a nice boost in value over the past 6 months.

Similar share price patterns can be noted for diversified natural resources peer BHP Billiton Limited  (ASX:BHP) which dropped consistently throughout January to land at $30.43 on the first day of February, more than $1.50 short of its mid-January high of $31.90.

Both Rio and BHP expect to log favourable results over the next month and both players are, fundamentally, shareholder friendly, so the slips are more likely related to commodity price expectations.

Rio has been noted lately for its willingness to adopt automation technologies and has recently partnered with TAFE and the Western Australian government to further explore such development.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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