The Rising Influence of Rising Affluence

[DewDiligence]

(Bullish for CLF/VALE)—Rio Tinto is scaling back its iron-ore expansion plans:

http://online.wsj.com/news/articles/SB10001424052702304747004579225320461142860

Rio Tinto aims to spend roughly US$2 billion to increase its annual iron-ore output in Australia about 25%—less than half the originally estimated amount.

…Rio aims to produce 330 million tons in 2015, up from the 290 million tons the mining company had hoped to reach early next year under an earlier expansion plan. It won't reach peak capacity until at least 2017—about two years later than originally projected.

…Rio Tinto hasn't decided when it will move ahead with two new mine projects. The company has delayed investment decisions on its proposed Silvergrass mine until the third quarter of next year at the earliest, and said it wouldn't make a decision on its Koodaideri site until at least 2016.