Queensland-focused minerals explorer Ivanhoe Australia will cut 50 jobs as its new owner Rio Tinto seeks to cut costs in the company.

Rio Tinto appointed four new members to the board of Ivanhoe Australia in May after taking control of its Canadian parent company Ivanhoe Mines.

The first stage of a subsequent review of Ivanhoe Australia has identified potential annual cost savings of $10 million by cutting up to 50 jobs from the business, Ivanhoe said on Tuesday.

Ivanhoe directly employs about 280 staff.

Specific positions to be cut have not yet finalised, but the changes will be made in the coming two weeks, Ivanhoe Australia said.

“These are difficult, but necessary first steps to improve the performance of the company and begin to create a sustainable platform for future growth,” managing director Ines Scotland said in a statement.

“In the coming months, we will further define the company’s direction and structure to create greater certainty for all of our stakeholders.”

Ivanhoe Australia has its headquarters in Melbourne, and began operating its first mine, the Osborne copper and gold mine in Queensland’s Cloncurry region, in February.

It also plans to develop a high-grade rhenium and molybdenum mine in the same area.

The job cuts are expected to have a one-off cost of $2 million.

The company said further savings of $20 million are expected to be achieved through reductions in other spending.

A review of its development program and assets is likely to last another three months, and is expected to identify further cost savings, Ivanhoe Australia said.

Its shares were down one cent to 60 cents at 1538 AEST.