From the AFR:
Rio Tinto has exceeded its cost cutting and capital expenditure targets set out in February as the world’s second largest resources company rebalances for a “volatile” and “fragile” global economic environment.
Rio achieved $US1.8 billion improvement in operating cash costs in the 10 months to October and remains on track to deliver the $US2 billion target for this calendar year.
Its exploration and evaluation investment budget had been cut by $US800 million in the 10 months this year, which exceeds its target of $US750 million.
Capital expenditure, meanwhile, had dropped 20 per cent compared to 2012 to less than $14 billion. It will fall to $US11 billion in 2014 and further still to $US8 billion in 2015.
Cost out deflation is a secular trend for mining.
