Rio set to cut investments

City A.M. Reporter
MINER Rio Tinto yesterday revealed plans to cut capital spending by a fifth in each of the next two years as it focuses on paying down debt and boosting returns to shareholders.

The giant also forecast a resurgence in steel demand in China, its biggest customer for iron ore, estimating demand growth at 7.5 per cent this year.

Rio Tinto said it was on track to meet its $2bn (£1.2bn) cost-cutting target for 2013.