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FEB. 14: RIO TINTO. The miner is expected to report a 49-per-cent plunge in second-half profit to $3.93-billion (U.S.); analysts also expect more details on Rio’s stated goal of $5-billion in cost cuts by the end of 2014. In photo: Remotely controlled tipper trucks operate at a Rio Tinto iron ore mine in Western Australia.
FEB. 14: RIO TINTO. The miner is expected to report a 49-per-cent plunge in second-half profit to $3.93-billion (U.S.); analysts also expect more details on Rio’s stated goal of $5-billion in cost cuts by the end of 2014. In photo: Remotely controlled tipper trucks operate at a Rio Tinto iron ore mine in Western Australia.
(HANDOUT/REUTERS)

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As charges mount and lending lags, miners move to bonds

Facing a backlash from angry shareholders and coping with tighter lending rules at the banks, global miners are aggressively pursuing alternative avenues to finance their projects.

The primary source of new funds: the bond market. Miners both big and small are turning to fixed-income investors to get their hands on new cash, raising $113-billion by selling new bonds in 2012, up from about $80-billion the year prior, according to Ernst & Young.