The job and spending cuts are expected to save some $1.6 billion a year by 2010, the company said. The company also said it would try to sell off “significant assets” in an effort to cuts its $40 billion debt load by $6.6 billion.
Rio Tinto has offices in 40 countries, with most of its employees in Australia and North America, as well as significant operations in South America and southern Africa.
Analysts expect other mining companies to make reductions near term. "The scale of the cuts looks dramatic but we would expect to see this across the industry," said John Meyer, an analyst at Fairfax IS investment bank in London. "Companies have expanded in recent years in response to high metals prices, but that’s over now. With the recent severe falls in demand, and the recent (economic) climate, we can see mining companies pulling back markedly." (Tire Review/Akron)