Rio Tionto is returning $US7.2 billion to shareholders after reporting a 33% lift in half year profit to $US4.38 billion.
The miner announced that the $US5 billion gathered from divestments in 2018 will be returned to shareholders, with the precise timing and form to be determined.
The company also announced a record interim ordinary dividend of $US2.2 billion, equivalent to 127 US cents a share, or about 50% of underlying earnings.
And there will be an additional share buy-back of $US1 billion to be completed by the end of February 2019.
“We have reported another strong set of results,” says Rio Tinto chief executive J-S Jacques.
“In a favourable market environment, our Tier 1 assets and strong operational capability have achieved a 43% EBITDA margin.
“Inflationary pressures are being experienced across the industry, but we have been able to offset these through our mine-to-market productivity program.”
Half year to June results at a glance:
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