Anglo Australian miner Rio Tinto Plc will be reducing its costs by $5bn during the next two years, Tom Albanese, CEO, told analysts.
The cost reductions will be made chiefly through increased innovation and automation although “volume will also be a factor", Guy Elliott, CFO, added.
The company will be looking into increasing automation at its mine sites, where it has already invested in driverless trucks.
However, operations are not under threat.
“We are not going to shut down operations to meet a cost reduction target – we are going to shut down operations if they don’t deliver cash flows,” Albanese said.
Rio Tinto also anticipates more income from the sale of existing businesses. The company has divested around 20 businesses...