By David Winning and Robb M. Stewart SYDNEY--Rio Tinto PLC (RIO) is to close its office in Sydney, as the Anglo-Australian mining giant moves to slash costs amid falling prices of key commodities such as iron ore, two people familiar with the matter said Tuesday. Around 30 people are employed in the Sydney office. Rio Tinto intends to use leased serviced offices when it needs a presence in Sydney in future, one of the people said. It comes less than two weeks after Rio said it expects to cut jobs at its Clermont coal mine in Queensland state as part of a review triggered by prices of thermal coal, used as a fuel in power stations, slumping to their lowest level in nearly two years. Shares in Rio Tinto are trading close to three-year lows as commodity prices have fallen and mining costs have risen, threatening to eat into what were bumper profits last year when prices were buoyed by rapidly growing demand from China and other Asian countries. Rio Tinto's main administrative office in Australia is in Melbourne, supported by regional operational centers that oversee the day-to-day running of mines producing iron ore, diamonds, coal and uranium. -Write to David Winning at david.winning@wsj.com and Robb M. Stewart at robb.stewart@wsj.com Subscribe to WSJ: http://online.wsj.com?mod=djnwires
