ABC reported that resource giant Rio Tinto will merge its
copper and coal business as part of a new range of cost cutting measures.
Under the new arrangements, the miner's portfolio of assets will be condensed
into four divisions aluminium, copper and coal, diamonds and minerals and iron
ore. Uranium will be added to the diamonds and minerals business.
The restructure comes amid tumultuous market conditions with commodity prices
under increasing pressure. The price of iron ore, Rio's biggest income earner
in Australia, had more than halved over the past 12 months to a little over USD
60 per tonne.
Mr Sam Walsh CEO of Rio Tinto said that the restructure would help the miner
further reduce costs and simplify the company's business structure. These
changes are part of our continuing business transformation to reduce costs,
simplify and strengthen our company and deliver sustainable value for
shareholders. Our coal and uranium assets remain a part of our world-class
portfolio. We will work hard to ensure there is a smooth transition for our
colleagues in the Energy product group and continue to maximise efficiencies in
our coal and uranium operations."
Source : ABC