Rio Tinto firsthalf profits rise 33% to $6.46b

SYDNEY: Rio Tinto has delivered a 33% jump in firsthalf net profit to $US4.38 billion ($NZ6.46 billion), driven by a recovery in commodity prices.

Underlying earnings — which excludes impairments and exchange losses — rose 12% to $US4.416 billion from $US3.9 billion a year earlier.

The group declared an interim dividend of $US1.27 a share, up 15% from $US1.10 a year earlier.

Rio Tinto has also announced an additional $US1 billion buyback of its UKlisted shares in its results, which were released after the close of the Australian market.

The global miner has increased its forecast capital expenditure for 2020 to $US6.5 billion, up from $US6 billion.

For the half, Rio achieved an earnings margin of 67% on its Pilbara operations in Western Australia on a freeonboard basis against a backdrop of consistently high iron ore prices and record steel production in China.

Markets were shaken on Wednesday by reports United States President Donald Trump may be considering new, increased tariffs on Chinese imports.

Rio Tinto chief executive JeanSebastien Jacques said he did not see any risk of a material impact on the company from present trade war tensions.

He said in such an environment, resilience was key.

However, Mr Jacques said Rio Tinto was strengthening its business and customer relationships and was not being complacent. — AAP

PHOTO: GETTY IMAGES Rio Tinto, whose mining sites include for iron ore in Western Australia, has announced a 33% jump in firsthalf profit.