Rio’s huge cash splash continues

RIO Tinto’s cash splash on investors continues, with the mining titan announcing a new $4.4 billion share buyback.

The latest $US3.2 billion ($4.4 billion) return to shareholders comes after Rio sold the last of its coal mines in Australia.

It follows the Anglo-Australian mining heavyweight declaring a record dividend and announcing a $1 billion share buyback at its full-year results last month.

Rio shares surged 3.6 per cent, or $2.70, on the revelation, closing at $78.10.

The buyback will be funded by the sale, completed last month, of the company’s stakes in the Hail Creek, Valeria, Winchester South and Kestrel coal mines in Queensland.

The Australian component will be conducted as an offmarket buyback allowing Rio to distribute surplus franking credits to shareholders.