Rio Tinto Group is on track to cut USD 2 billion in costs this year across its mining and corporate offices joining BHP Billiton Limited and Vale SA in trimming spending.

Mr Sam Walsh CEO of Rio Tinto said that “I can tell you we are on track to save USD 2 billion in 2013. Rio’s coal unit in Australia alone has cut spending on goods and services by USD 370 million this year.

Since Walsh 63 took over in January, Rio has announced plans to sell assets and reduce USD 5 billion of total costs as lower commodity prices cut revenue. Mr Walsh said the company was looking to make further assets sales beyond those announced after BHP’s new CEO Mr Andrew Mackenzie said he’s targeting an 18% cut in capital spending in fiscal 2014.

Mr Walsh said that Rio is seeking savings of USD 750 million on mineral exploration spending this year adding that the company had the option of expanding its Australian iron ore operations at much lower capital intensity than by developing new mines.

He said that we are targeting significant cash proceeds from divestments this year and are looking at further disposals of potential non core assets in addition to those we’ve already announced. The company had generated almost USD 14 billion selling assets over the past 5 years.