Rio Tinto Limited
(ASX:RIO) has reportedly conceded that it does not have sufficient capital on hand to invest in all of its value adding growth options.
According to Fairfax Media the global miner has also hosed down the possibility of a share buy back in admitting it doesn’t have surplus capital.
Chief Financial Officer Guy Elliot has told Fairfax the global miner is focusing investment decisions on the highest quality projects that will deliver cash returns in any economic conditions, citing iron ore growth in the Pilbara region as a prime example.
Fairfax also says Rio expects to lower its 2013 capital spending forecast of $US14 billion in the face of erratic iron ore prices.
Rio Tinto delivered a net profit of $6 billion in the first half of its 2012 financial year.
