RIO TINTO is moving quickly to deliver the first of 14,000 job cuts it has promised the market as it battles to deal with its debt load at a time of weak commodity demand.
The London-based miner last week slashed hundreds of jobs at its Australian operational head office in Perth and has sacked 241 workers and contractors at its Utah copper operations in the US.
Sources said up to 600 Perth-based jobs had been cut across the miner's administration and project development teams, compounding a horror week that has left Rio's remaining WA staff fearing for their future.
The news has been equally grim for Rio investors, with analysts downgrading their 2009 profit forecasts by between 31 per cent and 40 per cent because of lower metal prices and production shortcomings detailed in last week's December quarter production report.
The Perth job cuts follow Rio's decision late last year to axe 14,000 jobs from its global workforce and to reduce its $US38.9 billion ($57.6 billion) debt pile.
Rio is also scrapping billions of dollars worth of projects worldwide and is planning to raise $US10 billion from asset sales this year.
There are expectations Rio's $14 billion expansion of its Pilbara iron-ore business, which was to include a big boost to Cape Lambert's port capacity, extra railway capacity and more mines, will be scrapped.
Other measures taken recently by Rio in Western Australia have included the suspension of its HIsmelt pig iron operation for three months (while staff are being kept on full pay) and a slowdown in the pace of work at the Argyle diamond mine's underground project, at a combined loss of about 300 jobs.
Rio has also cancelled its $US371 million dream to make trains in its Pilbara iron ore business driverless.
"We know these decisions have personal consequences to those involved and those who remain," said Andrew Harding, the president and chief executive of Kennecott Utah Copper.
"Rio Tinto must respond, like so many other companies, to this global economic crisis, which may continue to deteriorate," he said.
