Financial cited Mr Guy Elliott CFO of Global miner Rio Tinto Plc as saying that the company which has already sold assets worth USD 12 billion since 2008 sees substantial cash coming in next year from the sale of further operations including its Pacific Aluminium and diamonds businesses.
Mr Tom Albanese CEO of Rio Tinto said that the mining group will focus on cost control in 2012 to 2013 and maybe beyond that as it aims to cut USD 7 billion in costs over the next 2 years.
Mr Elliott said that Rio Tinto announced plans to sell its diamonds business earlier this year and may have to take another charge on its aluminium business at the end of 2012. Increasing input costs and declining markets over the past 5 years hit Rio’s Alcan unit, resulting in the miner taking USD 8.9 billion charge on the aluminium business in February 2012.
Since 2008, Rio Tinto has sold more than 20 assets. Further disposals are seen to protect it against decreasing commodity prices. At the same time the group is focusing on growing the output of its lucrative iron ore operations.
