Rio Tinto boss Simon Trott eyeing up to $US10 billion in asset sales

Rio Tinto’s new chief executive has announced a string of cost cuts and planned productivity improvements as part of his vision for a slimmed down miner focused on its core and most profitable businesses, including iron ore and copper.

Laying out key targets ahead of a presentation to analysts and investors later on Wednesday, the group said it would trim unit costs. The company outlined improvements including $US650 million ($983m) of annualised productivity benefits by the end of the first quarter of next year, as it simplifies internal operations and pauses non-core projects and studies.

The world’s second-largest miner also said it plans to release $US5 billion to $US10 billion from its existing asset base with partnership, funding and other options. It said the strategic reviews of assets including titanium and borates were “advancing as planned.”

“We are delivering strong early productivity benefits and cost savings with more to come,” chief executive Simon Trott, who took the helm in August, said in a statement.

“Freeing up cash from our asset base where it makes sense will strengthen the balance sheet and maintain returns, as we invest for the future with discipline.”

Mr Trott, who previously ran Rio’s iron ore division, has pushed to slim down an organisation that critics argue became bloated in recent years, especially in support functions. He’s trimmed divisions, shed some senior staff and moved to offload or shutter non-core businesses.

More to come.