Rio Tinto Foresees Cost Savings In Aluminium; Lowers Capex Forecasts

(RTTNews) - Rio Tinto (RTPPF.PK, RIO.L, RIO, RTNTF.PK) said, by the end of 2015, its Aluminium product group will have delivered around $300 million of cash cost improvements, a reduction of $45 million in sustaining capex and cut working capital by around $400 million from 2014. The Group said the momentum in operating cost reductions continues through a broad range of initiatives that should remove around $300 million in additional cash costs from the product group in 2016, excluding any impact from currency or oil.

Rio Tinto also confirmed that it expects total capital expenditure in 2016 will be around $5 billion, compared to previous forecasts of less than $6 billion. This will be in line with the anticipated capital expenditure for the Group for 2015 of about $5 billion, compared to prior forecast of about $5.5 billion.