Rio ups payout as profit doubles

RIO Tinto has rewarded investors with the biggest dividend payout in its history and a fresh share buyback after its full-year profit almost doubled to more than $11 billion.

The miner yesterday posted a $US8.76 billion ($11.1 billion) net profit for the year to December, up 90 per cent from 2016.

Underlying earnings, which strip out one-offs, rose 69 per cent to $US8.63 billion – its highest tally since 2014.

The result was in line with expectations but the miner surprised with a more generous final dividend and lower debt pile.

Rio will pay out $US5.2 billion in dividends from its 2017 earnings after declaring a record final dividend of $US1.80 a share, taking its total dividends for the year to $US2.90.

It also announced a fresh $US1 billion share buyback, taking its total buybacks announced last year to $US4.5 billion.

The combined $US9.7 billion cash splash on shareholders follows several years of aggressive cost cutting and low commodity prices.

In the meantime Rio reports its $A2.4 billion Amrun bauxite project at Weipa is “advancing to plan”. “All wharf modules are now installed and the process plant beneficiation modules and transfer tower are in location.” Completion of the stacker, reclaimer assembly and ship loader assembly are next. It is due to start shipments next year.