PERTH (miningweekly.com) – Diversified giant Rio Tinto on Friday announced that it would streamline its business, condensing its assets into four product groups namely; aluminium, copper and coal, diamonds and minerals, and iron-ore.

The miner said that the new copper and coal product group would bring Rio’s coal operations alongside the existing copper portfolio, with copper CEO Jean-Sébastien Jacques leading the combined product group.

Uranium would be added to the diamonds and minerals product group, under the leadership of product group CEO Alan Davies, with energy CEO Harry Kenyon-Slaney leaving the business.

The aluminium and iron-ore product groups would remain unchanged.

Rio was also streamlining its corporate function, with the miner announcing that a number of corporate functions would be reshaped to further reduce costs and improve effectiveness as part of an ongoing optimisation programme.

“These changes are part of our continuing business transformation to reduce costs, simplify and strengthen our company and deliver sustainable value for shareholders,” group CEO Sam Walsh said on Friday.

“Our coal and uranium assets remain a part of our world-class portfolio. We will work hard to ensure there is a smooth transition for our colleagues in the energy product group and continue to maximise efficiencies in our coal and uranium operations.”

The new arrangements came into effect immediately.

Meanwhile, the miner has come under fire from the Western Mineworkers Alliance (WMWA) after iron-ore employees were sent a letter warning of mass lay-offs, with speculations ranging from between 100 staff members to more than 800.

The WMWA has called on Rio to clarify the details of the proposed job cuts, saying that employees were receiving conflicting reports as to the number of cuts across the Pilbara sites.

The worker union pointed out that Rio management had neither confirmed, nor denied that the company was looking to sack more than 800 of its Western Australian employees at a February 26 meeting.

Rio earlier this month revealed that it was expecting further cost improvements of some $75-million to be realised during 2015, above and beyond the $2.3-billion cost improvements reported in 2014. The miner also decreased its planned capital expenditure from the previously reported $8-billion to less than $7-billion.

While not confirming the number of cuts expected, a Rio spokesperson told Mining Weekly Online that the company had been identifying opportunities to simplify and streamline its operations.

“For a number of years we have been taking steps to maintain our competiveness in the knowledge of an expected decline in iron-ore prices. Our business transformation has delivered savings of more than $700-million over the past two years. This has included changes to maintenance practices, use of consultants and contractors, and capital reductions.”

The spokesperson said that where possible, staff being cut from the Pilbara operations would be moved into existed vacancies or other business units.

“Unfortunately, in some circumstances there will be people leaving our business. We are working closely with our employees through this process. We will provide support and assistance to those who are impacted.”