Rio Tinto to slow pace of iron ore expansion amid glut

Melbourne

RIO Tinto Group, the world's second-largest iron ore exporter, will trim the pace of its supply expansion as prices slump amid a market glut.

Production of the raw material used to make steel will increase about 7 per cent this year to 350 million tonnes, less than an 11 per cent expansion in 2015, according to a statement from London-based Rio on Tuesday. BHP Billiton, which reports output on Wednesday, forecasts 6 per cent growth at its Australian mines in the year to June 30 from a 13 per cent jump a year earlier.