Rio Tinto plans cost cuts for 2013

FTSE 100 company Rio Tinto today announced its initiative to cut costs in 2013, following operational disruptions to a copper mine.

The mining giant reported “record first quarter iron ore production” but said that damages to its Kennecott Utah Copper mine meant that refined copper production would be around 100,000 tonnes less than anticipated this year.

The company added that it plans to launch commercial production from a copper-gold mine in Mongolia by the end of June 2013, subject to talks with the country’s government.

“My streamlined Executive Committee structure is now in place and demanding targets for 2013, including for cash cost savings, are locked into our performance measures,” said CEO Sam Walsh.

“We are making good progress in achieving our cost reduction targets and other priorities for 2013, and are determined in our pursuit of greater value for shareholders.”