Rio Tinto doubles supplier pay terms to free up cash

• Rio Tinto (NYSE:RIO) says it is doubling payment terms for its suppliers to 90 days from 45 days in a bid to free up cash and reduce working capital.
• Rio's new terms reportedly will apply to all contracts valued at $3M or more, and suppliers whose contracts are valued at less than $3M will receive payment in 60 days.
• Rival Australian miner BHP Billiton (NYSE:BHP) moved to 60-day supplier payment terms ~18 months ago.
• Now read Why I am not buying Rio Tinto any more