[PrettyFifa12]

Rio Tinto lays off 16,000 as profits slump by more than half

Rio Tinto suffering from collapse in value of minerals it produces



A Rio Tinto plant in Australia. The mining group has cut 16,000 workers amid a profits slump. Photograph: Reuters

Rio Tinto has slashed spending and laid off 16,000 of its workforce after seeing profits slump by more than half following a collapse in the value of the minerals it produces.

The mining group said it had cut 2,000 more jobs than originally planned, a quarter of its 60,000 workforce, as it closed loss-making aluminium smelters and axed the development of new mines. Tom Albanese, its chief executive, said that further mass layoffs were not being planned.

Jan du Plessis, parachuted in as chairman to deal with the fiasco over the $20bn Chinalco fundraising, publicly backed Albanese, the principal architect of the aborted deal. Du Plessis said there were no plans to replace any executive directors, but indicated he would bring in some new blood to the non-executive board.

The miner said it had cut production of its highest cost aluminium smelters and would look at making further capacity cuts after the troublesome division made a loss of $689m (£417m). By the end of the year, it said that over a tenth of its smelting capacity would be mothballed or sold off.

Last week, Rio confirmed that it was shutting its Anglesey aluminium smelter next month, with the loss of about 400 jobs, because it would be too expensive to renew its electricity contract. A spokesman said that there were no plans to close Rio's two other smelters in Britain – in Northumberland and Scotland.

Albanese attempted to sound upbeat about the second half of the year, despite reporting earnings of $2.6bn for the first six months of the year, compared with $5.5bn last year.

Rio said it was planning to increase spending for the year to develop new mines, particularly iron ore, to $5bn from its previous forecast of $4bn, as commodity prices started to recover.

The results mark what Albanese hopes will be the end of a torrid period. Rio bowed to shareholder pressure and scrapped the controversial Chinalco deal, opting instead for the rights issue it had originally decided against.

[Poeetiol]

They are not very good employer, so I left. The top management are typical british bulldogs and their brains rotted with easy wealth.

They pay well but what the fuck do I need to earn $175k annually if I am expected to work hard, Sundays too. I would rather earn $135k for the same job at BHP and have a more relaxed life, leaving office at 4pm daily and going to pub at 3:30pm on fridays.

They made so many investment mistakes, the latest being Stern Hu.

[avitalporatova]

They are not very good employer, so I left. The top management are typical british bulldogs and their brains rotted with easy wealth.

They pay well but what the fuck do I need to earn $175k annually if I am expected to work hard, Sundays too. I would rather earn $135k for the same job at BHP and have a more relaxed life, leaving office at 4pm daily and going to pub at 3:30pm on fridays.

They made so many investment mistakes, the latest being Stern Hu.

Thank you for confirming how badly cheated you are in Australia. With such a salary, you are close to the highest tax bracket, with 10% GST and other 1000 hidden taxes in Australia after paying for very expensive house and very expensive car we all know you are married to your job. What a terrible, stressful life. Living paycheck to paycheck. How very sad for you.

You truly are a idiot and moron.

[quedry36]

but isn't the commdities picking up?

[Poeetiol]

They are not very good employer, so I left. The top management are typical british bulldogs and their brains rotted with easy wealth.

They pay well but what the fuck do I need to earn $175k annually if I am expected to work hard, Sundays too. I would rather earn $135k for the same job at BHP and have a more relaxed life, leaving office at 4pm daily and going to pub at 3:30pm on fridays.

They made so many investment mistakes, the latest being Stern Hu.

This UK manager is a handsome young chap who was transferred from the Singapore office where he made Singaporeans worked like slaves.
That is why he recruited me, but he got a workplace bully charge against him. A female executive accused him of sexual harassment.

I think he is transferred out, probably to China. (That is before Stern Hu)

This guy also has yellow fever - showing off photos of his tryst with pretty Singapore chicks. Basically, he enjoy enlarging Singapore girls pussies before handling over to the "dull-wit" cuckold Singapore males.

[Poeetiol]

but isn't the commdities picking up?

It will take time for orders to flow through to employment. Anyway, a lot of things remain uncertain. Mines remain mothballed and there are consolidation in this industry because of the high debt levels.

[avitalporatova]

but isn't the commdities picking up?

No china stock down 20% and US$ is rising in short term. Next year US fed will raise interest rates to 5% meaning dollar will soar next year, not good for commodities.

Poor Neddy. Soon unemployed plus still have to pay many 100 taxes.

Tsk Tsk Tsk

[Poeetiol]

but isn't the commdities picking up?

I checked with my colleagues. The resources industry lost 60,000 jobs. Those on temp visas have to either look for other jobs or return to their country of origin.

But Aussies and PRs will be able to get unemployment benefits/Newstart allowance from the govt agency, Centrelink.

The buildling industry is picking up some slacks. Some resources industry people return to become teachers or farmers, mechanic, etc.

The LNG industry is progressing.

Payment rates
The payment rates for 2009 are a guide only.

(fortnightly payment)

single, no children $453.30
single, with child(ren) $490.40 + family benefit
single, aged 60 or over and receiving payment for nine months $496.40
couple $409 (each)