Mining giant Rio Tinto Plc on Thursday announced plans to release up to $10bn of capital through cost cuts and asset sales, including stakes in infrastructure, and slashing its decarbonisation budget.
New chief executive Simon Trott told investors that Rio was targeting $650m of annualised productivity benefits by the end of the first quarter of next year as it streamlines the group and rethinks non-core projects.
Trott added that the strategic reviews of assets including titanium and borates were "advancing as planned".
"We are delivering strong early productivity benefits and cost savings with more to come. Freeing up cash from our asset base where it makes sense will strengthen the balance sheet and maintain returns, as we invest for the future with discipline," Trott said.
He also downgraded the decarbonisation budget to $1bn-$2bn from $5bn-$6bn but maintained the goal of halving emissions by 2030.
Trott said Rio would rely more on contracts with third parties - such as renewable energy developers - who would take on the spending risk and deliver the decarbonisation benefits to Rio.
Rio said 2025 copper production will be up to 3% higher than expected, with bauxite volume also set to beat forecasts, but Canadian iron ore volume will be lower than guidance.
Australian iron ore will have steady volume in the year ahead, with Trott promising to produce between 323 million and 338 million tonnes from the Pilbara region next year.
Reporting by Frank Prenesti for Sharecast.com