The mining giant forecast total capital expenditure of $US11 billion ($A12 billion) in 2014 and about $8 billion in 2015 after tipping 2013 capex to come in more than 20% lower than the previous year at less than $14 billion.

The budget was offered in a review of the year’s operational highlights, which included a number of belt-tightening measures, including a head count reduction of 3800 across the group since June 2012.

This figure takes into account 1800 new roles to support iron ore expansions. Another 300 roles have left the business with divested assets.

Rio chief executive Sam Walsh said he had set a clear direction for the company in a year of tough decision-making.

“While there is always more to do, I am confident we are well on the way to transforming Rio Tinto into the highest performer in our sector,” he said.

The seminar charted a $1.8 billion improvement in operating cash costs in the 10 months to October and an $800 million reduction in exploration and evaluation spend over the same period, exceeding the 2013 target of $750 million.

Divestments of non-core assets announced or completed over the year were reported to value $3.3 billion, with $2.3 billion of this having already been received.

Last week, Rio announced it was suspending alumina production at the Gove refinery in the Northern Territory, which would see 2.6 million tonnes of annual alumina capacity exit the market.

The company, however, emphasised its expectations for robust resources demand from developing economies, highlighting production pushes in copper and iron ore.

Rio Tinto Iron Ore chief executive Andrew Harding outlined the company’s new “breakthrough” pathway to production of 350 million tonnes per annum by 2017 in Western Australia’s Pilbara region at an all-in capital cost of $120-130/t.

“We have taking one of the industry’s most attractive growth projects and made it even better,” he said.

Production increases were flagged for the company’s copper business to include plans for operational growth at Oyu Tolgoi in Mongolia and Kennecott Utah Copper in the US as well as more investment in massive properties such as Peru’s La Granja project and the Resolution project in the US.

Walsh balanced these ambitions with the recent divestments and cost-cutting efforts using a cautious tone.

“From where I stand, we continue to see market fragility and volatility,” he said.

“The impacts of decisions like quantitative easing and austerity programmes are still washing through markets around the world. But it is a mixed story because, despite this uncertainty, we are also seeing modest economic recovery.

“In China, the decisions from the government’s Third Plenary Session last month reflect an ambitious yet pragmatic approach to continued reform and confirmed our expectation of gradual change which reduces the likelihood of a sudden downturn.

“Over the longer term, I remain optimistic about demand for our products. China’s urbanisation will continue and the development of other economies as they continue to grow at pace, such as India, Vietnam, Indonesia, the Philippines, the Middle East, the former Soviet Union, South America and Africa, will also contribute to ongoing demand for our products.”