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Furla Outlet Canada expected to get off easy by Rio Tinto push to cut costs and 14,000 jobsMONTREAL Canada is expected to be relatively unscathed by Rio Tinto decision to cut costs and shed 14,000 jobs around the world, mining analysts say.But certain aluminum and iron ore projects will likely be deferred.The global mining giant said it won reveal details of its plans until early next year once it has met with unions and other stakeholders.Canadian operations are among the most cost effective and best positioned on the cost curve in terms of our aluminum assets, said Rio Tinto Alcan spokesman Stefano Bertolli.Some Canadian aluminum workers could nonetheless be laid off as Rio cuts global production by five per cent, industry observers said. But smelters aided by low cost electricity deals are likely sheltered from dramatic reductions.not so sure Alcan needs to cut so much in Canada but they need to cut elsewhere, wherever the high cost plants are, said Charles Bradford of Soleil Bradford Research in New York.Australian analyst Glyn Lawcock of UBS said the US$228 million hydropower upgrade in Quebec and the US$300 million Kitimat modernization project are likely to be deferred.The British Australian company said Wednesday that the job cuts 12.5 per cent of its 112 kanken backpack,000 person workforce, which includes 13,000 in Canada and other operating cost reductions will save at least US$1.6 billion a year by 2010.The cuts will be concentrated among contractors, where 8,500 positions will be eliminated while 5,500 of Rio Tinto 97,000 direct employees face the axe.Rio Tinto burdened with debt taken on for last year $38 billion takeover of Canada based Alcan also said it will try to sell assets not previously listed for sale, as it attempts to trim US$6.6 billion in debt by the end of next year.Besides its Alcan and Iron Ore Co. Businesses in Canada, Rio Tinto is also a major diamond miner, with a 60 per cent stake in the Diavik mine in the Far North Furla Outlet.
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