More cost cutting as Rio cuts China growth assumption

Mining giant Rio Tinto is set to brag about outperforming its peers at an investor seminar held jointly in New York and London on Tuesday afternoon, though it concedes that market conditions in the short-term are likely to remain volatile.

Mining giant Rio Tinto is set to brag about outperforming its peers at an investor seminar held jointly in New York and London on Tuesday afternoon, though it concedes that market conditions in the short-term are likely to remain volatile.

The group is speeding up its cost cutting programme after reducing its expectation of growth in the Chinese economy. The mining colossus now expects growth in Chinese gross domestic product to be just below 8%, down from its previous assumption of 8% growth. The cost cuts, meanwhile, will primarily be in operating, evaluation and sustaining capital costs across the business. The group's current cost reduction programme has already slashed service and support costs by $0.5bn a year.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
MoneyWeek

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.