LONDON (Commodity Online): Sings of economic recovery was visible in mining companies’ plans for the coming year with mining giant Rio Tinto doubling its planned capital spending for next year to at least $5-billion.

Capital spending in 2010 was due to be cut to $2.5-billion, just enough to sustain current mines, but current plans were for $5-$6-billion, Rio said in a statement.

The company said it will continue its program of cost reduction and debt repayments, but its renewed strength enabled it to focus on disciplined capital expenditure on premier growth options.

Rio shares in London, which have outperformed the UK mining index by nearly 30 per cent this year, rose 2.1 per cent to 2,844 pence. This compared to a 1.1 per cent rise in the mining index.

The boost in planned capex was made possible after the firm strengthened its balance sheet by raising funds in a $15.2-billion rights issue and by cutting costs.

The group said it was on track to achieve operating cost savings of $2.5-billion next year.

Rio, the world’s third-biggest mining group by market value, said it had cut its net debt by 42 per cent so far this year to $22.3-billion by the end of September.

The group, the world’s second-biggest Iron Ore producer, also said it was pushing forward with long-term plans to expand operations in the Pilbara in Western Australia to 330 million tonnes per year, up 10 million tonnes from its previous plan.

This month, Rio increased its forecast output of iron ore this year to 210-215 million tonnes from 200 million tonnes. Rio struck a positive but cautious note for a global recovery in minerals markets on Oct. 14 when it released third-quarter production data.

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