Rio Tinto shares soar as firm targets $5bn cuts

<p>Rio Tinto’s shares have soared as the company targets major cuts to counterbalance slowing demand.</p>

Mining giant Rio Tinto has witnessed its share price soar on the London Stock Exchange (LSE) this morning (November 29th), as the company has announced radical plans to cut its outgoings.

The business proposes to slash its costs by $5 billion (£3.2 billion) over the next two years, as slowing global demand for the metals it digs for and falling commodity prices hurt profits.

Other miners such as BHP Billiton have had to resort to such measures.

There are concerns that weak demand for commodities may further retreat in the wake of financial crises in Europe and the US and as a result of sluggish economic growth in China.

Rio Tinto's chief executive Tom Albanese said: "We are taking further tough action to roll back the unsustainable cost increases of the past few years and are maintaining a relentless focus on improving productivity."

At 08:40 GMT on the LSE this morning, shares in Rio Tinto appreciated by 2.3 per cent to 3009.00p.

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