Rio Tinto To Cut Capex

(RTTNews) - Mining giant Rio Tinto Plc (RTPPF.PK, RIO.L, RIO, RTNTF.PK) said Tuesday that it will demonstrate strong progress and performance against its commitment of delivering greater value for shareholders at its investor seminar in Sydney today.

Rio Tinto noted that it delivered a US$1.8 billion improvement in operating cash costs in the ten months to October. It is on track to deliver the US$2 billion target for 2013.

The firm revealed a US$800 million reduction in exploration and evaluation spend in the ten months to October, exceeding the 2013 target of US$750 million.

The company announced a forecast 2013 total capital expenditure of less than $14 billion, a reduction of more than 20 per cent compared to 2012. Total capital expenditure is forecast to be reduced to US$11 billion in 2014 and to around US$8 billion in 2015, reflecting a 20 per cent reduction year-on-year.

"We have cut costs and are set to exceed our commitments made in February. Operating costs are down $1.8 billion year to date compared to the same period last year and exploration and evaluation costs are more than $800 million lower," said Sam Walsh chief executive.