Rio Tinto aiming to save $ 5 billion by 2014

Rio Tinto aiming to save $ 5 billion by 2014World's second largest iron ore miner, Rio Tinto has said that it is aiming to generate about $US 5 billion or $A 4.86 billion in savings by 2014.

The company has said that it will look to sell asset and will also reduce capital expenditure on approved and sustaining projects to about $US 13 billion or $A 12.64 billion in 2013. It is also planning to reduce spending on exploration and evaluation by about $US 750 million or about $A 728.97 million in 2013.

The company said that its profits were affected due to a $US 14 billion or $A13.61 billion in write-downs. The company's underlying earnings fell 40 per cent to $US 9.3 billion or $A 9.04 billion. The company had wrote down the value of its aluminium assets and a coal project in Mozambique leading to the exit of chief executive Tom Albanese.

Albanese had been working as the CEO of the company since 2007 and his resignation came following a major write down of the value of its aluminum assets of the miner and the purchase of a coal business in Mozambique during 2011.

New chief executive Sam Walsh said, "Let me assure you we won't pursue growth for growth's sake. Cost reductions are coming across the board in relation to our operations."