ADVFN - Advanced Financial Network.
HOME» NYSE » C » RIO Stock Price » RIO Stock News

Companhia Vale Share News

 Companhia Vale Do Rio Doce Stock Price
RIO Stock Price
 Companhia Vale Do Rio Doce Stock Chart
RIO Stock Chart
 Companhia Vale Do Rio Doce Stock News
RIO Stock News
 Companhia Vale Do Rio Doce Company Information
RIO Company Information
 Companhia Vale Do Rio Doce Stock Trades
RIO Stock Trades

Rio to Cut Australia Jobs, Shut Office to Trim Costs

-- Rio to shrink size of Melbourne headquarters, close Sydney office -- Some jobs to be transferred to Brisbane and Melbourne -- Move reflects cost-cutting drive across Australian operations SYDNEY--Rio Tinto PLC (RIO) is cutting some jobs at its regional headquarters in Melbourne and will close an office in Sydney as the Anglo-Australian mining giant moves to contain costs amid falling prices for key commodities such as iron ore, two people familiar with the matter said Tuesday. The restructuring is the latest sign that Australia's mining boom is running out of steam as China's economy slows and Europe struggles to resolve its debt crisis, with resources companies adopting an increasingly cautious approach to the timing of any recovery in demand and commodity prices. That approach has seen BHP Billiton Ltd. (BHP) shut a coal mine in Queensland state and Rio Tinto put another under review. David Peever, Rio's managing director for Australia, recently told staff in internal emails that some roles in Melbourne will be cut while other workers will be transferred to offices in Perth and Brisbane, one of the people said. Melbourne will remain a corporate head office for Rio Tinto, but is to be scaled back, the person said. An office in Sydney where about 30 people work will be closed, and Rio Tinto intends to use leased serviced offices when it needs a presence in the city in future, the person said. Mining companies are being forced to review their expansion plans and tackle rising operating costs as commodity prices have continued to weaken amid concerns over demand from key consumers such as China. Companies operating in Australia have also struggled with the strength of the local currency against the dollar, the currency in which they operate. BHP Billiton, which has its headquarters in Melbourne, is also focusing on reducing overhead expenses and operating costs, and currently is reviewing contractor and staff numbers across its operations globally, a spokeswoman for the company said. BHP is expected to decide at the end of the year whether to proceed with three US$10 billion-plus expansion projects in Australia and Canada. Shareholders and analysts widely expect at least one project will be deferred. Major mining companies including BHP and Rio Tinto are forecast to report a drop in earnings this year as weaker prices eat into cash flow and are only partially offset by increases in some raw materials, such as iron ore from Western Australia state. Rio Tinto's underlying earnings before one-time items are expected to have dropped to US$4.94 billion for the six months through June from a record US$7.78 billion a year earlier, according to a consensus of 20 analysts' forecasts compiled by the company. Rio Tinto Chief Executive Tom Albanese earlier this month said that global economic conditions and sentiment had dropped markedly in the second quarter of the year, and the company was keeping a close eye on the pace of the U.S. recovery, the ongoing eurozone crisis and efforts to stimulate the Chinese economy. Less than two weeks ago, Rio Tinto said it expects to cut jobs at its Clermont coal mine in Queensland 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. -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

Stock News for Companhia Vale (RIO)
DateTimeHeadline
08/26/201504:05:00Anglo Pacific Net Loss Narrows on Higher Royalty Income
08/24/201517:37:00ADRs End Lower; Chinese, Commodities Firms Decline
08/20/201505:59:00From Mining to Refining: Low Commodity Prices Force Shift at...
08/16/201522:19:46Is A$100 a Share Cursed? -- Market Talk
08/13/201506:10:03Glencore Hit by Write-Down, Cuts Capital Spending
08/11/201517:50:53ADRs End Lower; Miners, Steelmakers Among Decliners
08/06/201504:20:51Commodities Slump Slams Rio Tinto Earnings--Update
08/06/201504:20:09Commodities Slump Slams Rio Tinto Earnings
08/06/201503:18:50Commodities Slump Slams Rio Tinto Earnings
08/05/201522:30:25China Shares Fall; Japan Rises Ahead of U.S. Jobs Data
08/04/201504:18:37Australian Shares End Higher, Helped by Earnings and Sales Data
07/28/201504:28:06Australia Shares End Slightly Down; Energy Stocks Rise
07/23/201509:00:00Industrial Metals and Minerals Stocks under Review -- Uranium...
07/23/201503:50:48Fortescue Deepens Cuts as Iron-Ore Downturn Bites
07/22/201506:50:53Tech, Resources Stocks Weigh on European Markets -- Update
07/21/201503:51:17Australia Shares Extend Gains for Sixth Straight Day
07/20/201504:07:10Australia Shares Rise for a Fifth Straight Session
07/16/201518:01:37ADRs End Higher; National Bank of Greece Declines
07/16/201514:26:21Anglo American Takes up to $4 Billion in Write-Downs -- 2nd Update
07/16/201504:50:10Anglo American Takes up to $4 Billion in Write-Downs -- Update

Companhia Vale and other New York Stock Exchange stock quotes are delayed by at least 20 minutes.
All other stock price data is delayed by at least 15 minutes unless otherwise stated.
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Contact Us | Copyright 1999-2007 ADVFN PLC. | Privacy Policy | Investment Warning | Data accreditations | Investor Relations

ADVFNADVFN ItalyADVFN GermanyADVFN FranceADVFN BrazilADVFN JapanADVFN UKADVFN US noad