Rio Tinto to Cut Jobs as Part of Internal Restructuring

MINING.com reported that Rio Tinto plc (ASX:RIO,LSE:RIO,NYSE:RIO) plans to cut hundreds of jobs at its Australian coal and iron ore operations as it embarks on an aggressive internal restructuring program.

As quoted in the market news:

The move comes just weeks after the miner announced a 10% drop in annual earnings and launched a $2 billion share buy-back to return cash to investors. Rio warned then the measure would imply further cost cuts to help offset the damage done by the ongoing slump in commodity prices.

It also comes on the heels of a fresh and steep drop of iron ore prices. Last week the commodity fell below $60 a tonne, down from $140 a tonne at the start of 2014. Seaborne continues to be weak, with the 62% Fe import price including freight and insurance at the Chinese port of Tianjin hitting Monday $58.58 per tonne.

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