Rio Tinto set to axe thousands of jobs

Mining conglomerate Rio Tinto is set to postpone billions of pounds of big projects and axe thousands of jobs in a huge crackdown on spending. Chief executive Tom Albanese is taking swift action to preserve cash after rival BHP Billiton’s decision to scrap a £43billion takeover bid for Rio after a year-long battle. Rio, the world’s third-biggest mining company, is poised to mothball its massive Simandou iron ore project in west Africa among other schemes around the world. In addition to Simandou, those projects most likely to be axed include aluminium and iron ore projects in Canada and countries in Africa. Rio will also delay starting another phase at its giant Pilbara iron ore mine in Western Australia. The delays are likely to result in thousands of job losses and could be confirmed to the stock market as early as this week. Rio is also expected to update the market about its ability to manage its £24billion to £27billion debt mountain. City sources believe the mining giant is in talks with banks to refinance its first debt repayment of £6.1billion, which is due next October. Source: www.dailymail.co.uk