Mining giant Rio Tinto to cut more jobs in western Australia iron ore division

Metals and mining giant Rio Tinto is set to slash more jobs throughout its iron ore division in Western Australia, Australian media reported on Monday.

The world's second largest iron ore miner has been undertaking significant cost reductions to shield it from the dramatic falls in key commodity prices, slashing 6.2 billion U.S. dollars since late 2012, and eyeing a further two billion U.S. dollars is cost reductions.

Rio on Monday told the Australian Broadcasting Corporation that "rolling reductions" were ongoing at its Western Australia mining operations, but declined to confirm four percent of its local workforce were facing the axe.

"The market outlook remains challenging and we currently have 1000 initiatives underway across our business to reduce costs, improve productivity and ensure we remain internationally competitive," Rio said in a statement to ABC.

The ongoing layoff is despite a near doubling of spot iron ore prices over the past six months. Iron ore for immediately delivery was 72.60 U.S. dollars per tonne in Friday's offshore session.

Rio said its analysts expect iron ore to ease back and average 40-50 U.S. dollars per tonne in 2017, however Australia's banks have upgraded their forecasts due to the commodities resilience.

BHP Billiton chief Andrew Mackenzie holds a similar view, telling reporters in Brisbane last week iron ore prices are likely to trend lower from supply expansions despite price boosts from restocking and short-term disruptions.

But Commonwealth Bank of Australia (CBA) has lifted its outlook from 53 U.S. dollars per tonne to 58 U.S. dollars per tonne for fiscal 2017 due to both sustained and temporary reasons. Endit