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By Esther Tanquintic-Misa: Subscribe to Esther's RSS feed | July 30, 2012 8:46 AM GMT
Rio Tinto-controlled mining company Ivanhoe Australia on Monday announced it would reduce its budget for exploration spending by $15 million annually.
At the same time, the miner said it would start to develop a more targeted methodology to its exploration drillings.
Known for its aggressive exploration attitude, Ivanhoe Australia, since being acquired by Rio Tinto has been undergoing a major review. This attitude will need to be altered.
"An aggressive exploration effort has been pursued to date. Our geological teams are now evaluating all the collected data to establish a new exploration focus," the company said in a statement.
"Ivanhoe Australia's preliminary assessment is to re-focus its exploration effort on areas prospective for mid-size base metal systems."
The Queensland-focused miner last month announced slashing 50 jobs to help new owner Rio Tinto save $10 million a year as it moves to reduce costs in the company. In January, the global miner took over Ivanhoe Australia when it assumed control at Canadian parent company Ivanhoe Mines, along with it the Mongolian Oyu Tolgoi copper-gold project.
On Monday, Ivanhoe Australia announced it had been loaned by Ivanhoe Mines a $US50 million, 12-month funding facility as working capital.
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