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
03/06/201503:10:13Iron Ore Prices Sink
03/05/201519:15:15Iron Ore Sinks as China Ushers in Slower Growth
03/05/201501:20:07Rio Tinto Clears Hurdle on Controversial Coal Pit
03/05/201500:10:45Rio Tinto Clears Hurdle on Controversial Australia Mine Expansion
03/04/201512:32:56LONDON MARKETS: ITV, StanChart Lead FTSE 100 To Higher Close
03/04/201509:40:38Correction to London Property Market Story on Tuesday
03/04/201507:34:31LONDON MARKETS: Drop In Fresnillo, Mining Shares Pull London...
03/03/201517:56:08Superrich Hunt for Trophies in London Property Market
02/26/201517:03:15Rio Tinto Revamps Corporate Structure to Cut Costs
02/26/201508:22:26Correction to Story on Karelian Diamonds on Wednesday
02/25/201503:54:12Karelian Diamonds Net Loss Widens, Continues Finland Exploration
02/24/201513:07:13BHP Billiton Digs Deep for Investors -- Update
02/22/201516:52:15BHP Chief to Shed Light On Mining-Spinoff Plan
02/22/201516:41:22BHP Chief To Shed Light On Mining-Spinoff Plan

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