Rio Tinto announces cuts to 'unsustainable' costs
Mining giant Rio Tinto has announced it will take ‘tough action’ to roll back unsustainable costs as the company faces an increasingly volatile international commodity market.
Rio Tinto’s Chief, Tom Albanese, delivered a keynote talk at the company’s recent investor seminar, where he acknowledged that the company would be facing challenges in improving its productivity and adverse market conditions.
"We are taking further tough action to roll back the unsustainable cost increases of the past few years and are maintaining a relentless focus on improving productivity,” Mr Albanese said.
The miner is currently facing what it calls a volatile short-term macroeconomic outlook, with concerns over US and European economic growth prospects giving the company pause for concern.
But despite the international uncertainties, Mr Albanese said the company remains ‘guardedly’ optimistic on China’s growth prospects, with positive signs coming out of the country that suggests early signs of an economic pick up.
Mr Albanese’s speech comes after Rio Tinot announced plans to cut its spending and find savings in the realm of billions of dollars in the coming few years to offset risk associated with market volatility.
Rio released estimates to the Australian Stock Exchange that would see the company reduce its operating and support costs by over $4.8 billion.