Mining giant Rio Tinto has announced that it will continue to implement heavy reductions in capital expenditures despite strong hopes of economic recovery.

Addressing an investor seminar in Sydney, the miner said that it expects total capital expenditure in 2013 to see a year-on-year decline of over 20 per cent to fall below $14 billion, with commensurate reductions slated to continue over the next two years. As a result of the compounding effects…