Rio to cut debt by up to $US2.5bln

Rio Tinto plans to buy back up to $US2.5 billion ($A3.3 billion) worth of its outstanding bonds as part of a capital management plan.

Rio Tinto plans to buy back up to $US2.5bn worth of bonds as part of a capital management plan. (AAP)

Mining giant Rio Tinto has launched an offer to buy back up to $US2.5 billion ($A3.3 billion) of its US dollar-denominated bonds as part of its ongoing capital management program.

Rio will redeem about $US1.72 billion worth of 2019 and 2020 notes and another $US781 million of bonds due for maturity in 2021, 2022 and 2025.

The debt reduction plan follows redemptions or repurchases of $US7.5 billion worth of notes in 2016.