After slashing more than 16,000 jobs, offering more shares to investors and selling a number of assets, Rio Tinto is doing really well, reports the company’s Chief Financial Officer, Guy Elliott, only two days after the company locked out over 500 workers at its Borax mine, in southern California.
Elliott told the London press that the company might soon expand spending on new projects and possibly start buying new projects.
“We are very happy with the progress of the recapitalization since June,” Elliott said. “We have lots of organic options and this gives us the flexibility to progress those if they require funding.”
Some are even speculating that Rio Tinto may soon have more cash than it can deal with.
“From being on the brink in 2009, to having a surplus of cash in 2011 is a stunning turnaround and raises the question of what to do with any excess cash pile that builds,” wrote Johan U. Rode, an analyst at Citigroup, in London.
Rio Tinto’s optimistic view of a company soon flush with cash counters insinuations made by Borax leadership that sacrifices by the over 500 workers at the International Longshore and Warehouse Union Local 30 are necessary to keep the company afloat.
Dean Gehring, general manager of the mine, told the Los Angeles Times Rio Tinto would not be negotiating with the union “any time in the near future” and that, because of the threat of a strike, the company had to lock the workers out in order to remain globally competitive.
LSMN
Eve Divine
doncorvette
Bastards! They’re one of the most anti-worker companies in the world!