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Rio Tinto aims to boost free cash flow by $5 bln over five years

Published 24/11/2016, 09:34 am
© Reuters.  Rio Tinto aims to boost free cash flow by $5 bln over five years
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SYDNEY, Nov 24 (Reuters) - Rio Tinto RIO.AX RIO.L on Thursday outlined plans to boost free cash flow by $5 billion over the next five years by sweating its assets harder while expanding in iron ore, copper and bauxite.

The company, under fire over a bribery scandal in Guinea, also flagged that capital spending this year would be lower than it had suggested earlier, coming in at less than $3.5 billion compared to its guidance of around $4 billion.

"Lifting the productivity on our $50 billion asset base creates a low risk and highly attractive return. It will deliver an additional $5 billion of free cash flow over the next five years," Chief Executive Jean-Sébastien Jacques said in a statement before briefing investors in Sydney.

The briefing marks the first public appearance by Jacques since he fired two top executives following an internal investigation into $10.5 million in payments in 2011 to an advisor who helped it secure mining rights for the Simandou iron ore project in Guinea.

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