RIO Rio Tinto Plc

SYDNEY—Rio Tinto PLC said it will spend less on major projects next year than it expected, as the miner takes a strict approach to spending amid a commodity market downturn.

The Anglo-Australian resources giant said on Tuesday it now estimates capital expenditure of about $5 billion in 2016 compared with an earlier forecast for less than $6 billion.

"Our prudent capital allocation and disciplined approach to the balance sheet have reinforced our resilience during this period of ongoing volatility," Chief Executive Sam Walsh said in a statement.

Prices for commodities from iron ore to copper have fallen sharply due to ample supplies and slowing demand.

Rio Tinto, which will on Tuesday hold an investor seminar for its aluminum business in London, meanwhile said it expects to reduce cash costs at that unit by about $300 million by the end of this year, and by a similar level again in 2016. Further improvements to productivity at its mines should also aid a lift in output of bauxite, alumina and aluminum, it said.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

December 08, 2015 03:15 ET (08:15 GMT)

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