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Walsh puts the squeeze on Rio

By on April 11, 2013

Rio Tinto

New Rio Tinto chief executive Sam Walsh is putting the squeeze on the big miner.

NEW Rio Tinto chief Sam Walsh has ratcheted up his price-chopping drive, inserting nearly $ Seven-hundred million in US boom plans under overview.

the united states pullback comes as BHP Billiton axes a contract with Leighton Holdings, bringing in a smaller non-public company to do the work at a cheaper price.

Leighton, which provides mining products and services, printed the day gone by that the transfer – at a coal mine in Queensland – would see $ 260 million decrease from its order e ebook.

Rio is reviewing US$ Four Hundred million in spending on a tools upgrade at a copper mine in Salt Lake Town, Utah.

an additional US$ 300 million value of capital expenditure slated for a spread of an nickel and copper mine in Michigan moreover hangs within the steadiness. Rio has already spent $ US400 million on the two mines.

the newest cuts have been disclosed in an operational change on the mining large’s website online.

Mr Walsh, who has been within the top job for not up to three months, is aiming to cut $ 5 billion from the corporate’s base line with assistance from the top of subsequent yr.

the most recent Monetary financial savings pitch comes after the company employed Deutsche Monetary Establishment to help promote is Australian coal property. It has additionally flagged a halt to a US$ 500 million software to beef up an aluminium smelter in Iceland.

Rio tumbled to a US$ 2.9 billion loss remaining monetary 12 months after writing greater than US$ 14 billion off its coal and aluminium assets.

Australia’s two best mining Companies are every in deep worth slicing mode.

BHP scale back its annual prices through the use of US$ 1.9 billion throughout the first 1/2 of of the Monetary year.

“that is the start of the expertise,” the corporate’s finance director Graham Kerr talked about the day past.

BHP Billiton shares closed 1.7 per cent better at $ 33.Sixty Eight yesterday. Rio shares jumped 2.7 per cent to $ Fifty Eight.28.

john.dagge@News.com.au


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