Rio Tinto to lay off 14,000 worldwide

0 Comments | Deseret News (Salt Lake City), Dec 11, 2008 | by Stephen Speckman Deseret News

In August, Rio Tinto had posted record first-half profits due to a jump in demand for iron ore from steelmakers in Asia and by the $38 billion acquisition last year of the Canadian company Alcan. Kettering said Rio Tinto plans to continue paying down on that debt.

Last June, Rio Tinto announced plans to invest $270 million in building a new facility that will process the metal molybdenum, of which the company produces about 30 million pounds a year. Since then, molybdenum prices have plummeted, but the company has said it will continue with its facility plans.

In London, Rio shares on Wednesday closed up 256 pence, or 20.4 percent, to 15.14 pounds ($22.50). In Sydney, where trading ended before the announcement, its stock rose 12.14 percent to AU$37.40 ($24.76).

Contributing: Associated Press; New York Times; Bloomberg News; Michael Black, Deseret News.

E-mail: sspeckman@desnews.com