BHP, Anglo American seen following Rio’s lead on cost cutting [UPDATE]
Dec 11, 2008 | 12:54 PM
| Josephine Mason
BHP Billiton and Anglo American Plc are expected to follow Rio Tinto in coming weeks in setting swinging cost-cutting measures, including project delays and staff cuts, analysts said.
Anglo American will announce the results of its capital expenditure review next Wednesday and BHP was due to hold a high-level meeting this week to discuss measures to cut costs, a BHP source said, adding that the aim of the cost-cutting meeting will be to discuss steps to protect cash flow. Possible measures include job cuts.
"I expect other mining companies will be adjusting (their capital expenditure forecasts). We'll see similar measures" from Anglo next week, one London-based analyst said.
Rio Tinto plans to more than halve its capex next year to $4 billion from a previous forecast of $9 billion through some 14,000 job cuts, project delays and asset sales (AMM, Dec. 11). ....
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