Rio Tinto plans to cut its $US38.9 billion ($58.9 billion) debt pile by a further $US10 billion ($15 billion) by the end of 2009, as it increases assets sales, cuts jobs and reduces spending, but says it will hold its dividend steady.

The group, which has been at the centre of analyst downgrades related to its debt position since BHP Billiton pulled a $100 billion takeover bid last month, said the measures would help it respond to the global economic downturn.











"Given the difficult and uncertain economic conditions, and the unprecedented rate of deterioration of our markets, our imperative is to maximise cash generation and pay down debt,'' chief executive Tom Albanese said. "We have undertaken a thorough review of all our operations and are executing a range of actions.''

These include reducing its global worker headcount by 14,000, of which 8500 are contractors and 5500 permanent staff, for annual operating cost savings of $US1.2 billion.

London shares of the dual-listed company jumped more than 10% as trading started. Its Australian shares closed up 12% at $37.40, as investors anticipated its announcement, said UBS analyst Glyn Lawcock.

