Is the Bighill affected? Rio Tinto CEO sets new cost cuts as projects go ahead
Sam Walsh, who was named CEO in January is setting new cost-cutting targets as the global miner faces a sharp downturn in demand for industrial commodities.
Author: Reuters
Posted: Tuesday , 16 Apr 2013
SYDNEY (Reuters) -
Rio Tinto will initiate major cost-cutting measures under its new chief executive as the Anglo-Australian miner combats a sharp downturn in demand for industrial commodities.
For projects started during the now-defunct mining boom, unchecked costs have become a No. 1 priority for resource companies facing a less robust customer in China, the world's biggest importer of iron ore, copper and other industrial staples.
"My streamlined executive committee structure is now in place and demanding targets for 2013, including for cash cost savings," CEO Sam Walsh said in a statement.
Walsh was named chief executive in January as part of a senior level shake up after a series of disastrous investments drove Rio Tinto to its first annual loss ever.
No details of the targets were given in the statement. Rio Tinto's emphasis on the cuts come after China's announcement on Monday its economy undershot expectations by growing 7.7 percent in the first quarter from a year ago, a stumble that battered global markets and forced analysts to slash the country's full-year growth forecasts.
Under Walsh, Rio Tinto has already cut hundreds of jobs and marked underperforming copper.