Rio Tinto Announces More Savings Across All Sites

Andrew Harding, head of the management team at Rio Tinto, recently announced that a series of cost-cutting measures will be implemented across all upstream and related activities in order to maintain their business edge in the market. The program provides for several such actions at all sites.

According to the document, the company plans to negotiate existing service and supply contracts to bring down the price. Prices for all components will be taken into account, including prices for bearings and service spare parts. The program is also designed to significantly reduce warehouse stockpiles. Other cost-cutting measures suggest an immediate freeze on new hires and a thorough review of the organizational structure. In addition, the capital expenditure plans will be revised in accordance with the existing market conditions. Harding also calls for methodological changes in field maintenance planning activities.

All executives will submit quarterly reports to assess performance in terms of safety, cost and performance. The new measures may lead to the loss of jobs in the warehouse and purchasing departments, as well as the cancellation of some existing service and supply contracts. Meanwhile, a company spokesman declined to provide further details.

According to Rio Tinto's management, these measures are aimed at countering difficult market conditions. In addition, they will further their goal of being the world's most efficient iron ore company. Harding also ruled out rumors that the company plans to cut its Australian iron ore workforce.