By Chris Lau
Kapitall / The Street
More big moves could be coming for cyclical resource sector stocks. This is on top of the volatility investors experienced in the last few months. Clearly, negativity in resource stocks is building, but a reversal in sentiment could mean more volatility in the short-term.
In the copper sector, cost reductions could help improve the outlook of Rio Tinto (RIO). The firm could cut up to 300 jobs at its copper and gold mine in Mongolia. Freeport planned to spend $5 billion for expansion work at the Oyu Tolgoi mine in Mongolia. Due to disagreements with the government, work stopped. Rio already cut jobs at the mine last year.