Rio Tinto is to cut costs and spending on exploration by more than $US6 billion in the next few years due to volatile markets.
Rio said on Thursday it aimed to reduce its operating and support costs by more than $US5 billion by the end of 2014.
Rio said it would also cut spending on exploration and evaluation projects by $US1 billion over the remainder of 2012 and 2013.
AAP reports capital expenditure on approved projects will taper off from their current levels in 2013.
"We are taking further tough action to roll back unsustainable cost increases of the past few years and are maintaining a relentless focus on improving productivity," said chief executive Tom Albanese in a statement.
The company said said short-term macroeconomic outlook remains volatile, with major uncertainties about future economic growth in the United States and Europe. But AAP reports it was guardedly optimistic on China's prospects.
Recent economic data from China suggests early signs of an improvement in growth, and Rio expects this to continue in 2013, causing a slight rise in economic growth to above 8%.
