Rio Tinto is planning to cut $7 billion in costs over the next two years and increase asset sales as well, according to CNBC. The iron ore producer is taking those steps as a measure against weaker commodity prices. It is the only global iron ore producer that has not slowed iron ore expansion plans, forging ahead with $21 billion in mine, port and rail work to boost its Australian capacity. But like its peers, Rio Tinto has been cutting costs, reviewing other projects and closing coal mines in Australia due to depressed commodity prices, soaring costs, and the persistently strong Australian dollar.
“For me the theme for this year, next year and probably the extended period beyond that in this volatile environment will be everything having to do about cost control,” said Rio Chief Executive Tom Albanese.
With the efficiency drive, the firm has managed to find ways to lift its iron ore capacity just by tweaking mine, rail and port operations, and said it expected to find further gains without big licks of capital. http://www.cnbc.com/id/100256682