Mining giant Rio Tinto is to consolidate its two
In a stock market announcement this morning, Rio Tinto said it has plans to reduce its debt by $10bn (£6.8bn) by the end of next year. Its net debt currently stands at almost $40bn.
The company said its 50-strong City of
Tom Albanese, chief executive of Rio Tinto, said “Given the difficult and uncertain economic conditions, and the unprecedented rate of deterioration of our markets, our imperative is to maximise cash generation and pay down debt.”
“We will minimise our operating and capital costs to appropriately low levels until we see credible and meaningful signs of a recovery in our markets, but will retain our strategic growth options. We will expand further the scope of assets we are targeting for divestment. By taking these tough decisions now we will be well positioned when the recovery comes.”
Last week Rio was forced back to the drawing board after it failed to attract interest in the development of its former
The company launched a search in June for a joint venture partner to bring forward the speculative redevelopment of its former London HQ at 5-6 St James’s Square, SW1. Plans included 125,000 sq ft of offices, 15 flats, and art gallery and a courtyard.
Despite interest from several parties, including Stanhope, Exemplar Properties,
Rio Tinto, which is listed in the
It has been subject to takeover speculation from rival BHP Billiton, which finally abandoned its offer in November.
