Rio Says they would focus on their bauxite projects for investments

Rio Tinto Group plans to focus on bauxite investments from the coming year with the demand expected to rise in China.

“This year we are focusing on continuing to pay down debt, to improve the strength of the balance sheet,” Chief Executive Officer Sam Walsh told reporters following the company’s annual meeting in Melbourne. “That brings us to next year and it brings us to options that we are providing the board in relation to how will the future cash flow be used. Clearly it can be used to build the business and grow the business, or it can be used for returns, or both.”

The largest mining companies in the world are restraining their expenditure after the rise in metal prices slowed down. Rio is cutting down on their capital and has spent about $8 billion in the year 2015, less than half the outlay of the company in 2012.

“We’ve done the lion’s share of the hard yards,” Walsh said. “You’ve got to be very careful that you don’t start to cut into the muscle of an organization, or even into the bone.”

Rio Tinto’s South of Embley bauxite project in Queensland state is among other favored growth options, Walsh said.

“All of these projects are available to be considered for investment when the time is right,” Walsh said in his speech.