Rio Tinto Group, the world’s second- biggest mining company, is on track to cut $2 billion in costs this year across its mining and corporate offices, joining BHP Billiton Ltd. and Vale SA in trimming spending.
BlackRock Inc.’s Evy Hambro, who manages the $10 billion World Mining Fund, says he will seek talks with Rio Tinto Group management on a planned iron-ore expansion that some analysts say will result in lower prices.
BlackRock Inc.’s Evy Hambro , whose gold fund in Europe has beaten most of its rivals, started the firm’s first gold mutual fund in the U.S. as demand for the metal rises on concern that global economic growth is slowing.
The world’s biggest mining and steel companies have wiped about $50 billion off project valuations in the past year and the purge is poised to continue this earnings season as managers reassess expensive takeovers.
Rio Tinto Group, the second-biggest mining company, will take about $14 billion of writedowns for failed deals in aluminum and coal led by Chief Executive Officer Tom Albanese, who departs after almost six years in charge.
Evy Hambro, portfolio manager of BlackRock Inc.’s $16 billion World Mining Fund, said he’s been adding “significantly” to his holdings in the past few weeks as mining-stock valuations are “unrealistically low.”
Freeport-McMoRan Copper & Gold Inc., the world’s largest publicly traded copper producer, is paying $9 billion in cash and stock for two U.S. oil and natural gas companies that will expand it into a global natural resources giant.
When Rio Tinto Group decided it had to part with Chief Executive Officer Tom Albanese, the second- largest mining company turned to Sam Walsh, whose iron ore unit has generated almost $40 billion in profit in seven years.