Rio digs up $8.5b in cash gen­er­a­tion

The Weekend Post - - Business -

RIO Tinto’s Far North baux­ite project Am­run is on track to be­gin ship­ping and pro­duc­tion in the first half of 2019.

It comes as the re­sources gi­ant this week an­nounced a to­tal cash gen­er­a­tion of $8.5 bil­lion in 2016.

“The re­sults show we have kept our com­mit­ment to max­imise cash and pro­duc­tiv­ity from our world-class as­sets, de­liv­er­ing $3.6 bil­lion in share­holder re­turns while main­tain­ing a ro­bust bal­ance sheet,” said Rio chief ex­ec­u­tive Jean-Se­bastien Jac­ques.

“At the same time, we strength­ened the port­fo­lio and ad­vanced our high-value growth projects as we look to the fu­ture.

“We en­ter 2017 in good shape. Our team will de­liver $5 bil­lion of ex­tra free cash flow over the next five years from our pro­duc­tiv­ity pro­gram.”

Between Weipa and Au­rukun, Am­run is planned to gen­er­ate an ini­tial out­put of 22.8 mil­lion tonnes of baux­ite a year. Work is ramp­ing up, with the 40km ac­cess road com­pleted in De­cem­ber and the con­struc­tion ac­com­mo­da­tion vil­lage op­er­a­tion to 470 beds.

RIO CEO: Jean-Se­bastien Jac­ques.

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