Rio Tinto (NYSE:RIO), the world’s biggest iron ore miner, reported its highest-ever profit and announced that it will pay $9.1 billion U.S. in dividends.
Rio Tinto said it has benefitted from this year’s global commodities rally. The company is the first of the major miners to post earnings, kicking off a reporting season that’s expected to see record results across the board.
The industry has been one of the biggest beneficiaries from the world’s efforts to emerge from the pandemic. Trillions of dollars have poured into recovery packages and ignited demand for commodities such as iron ore and copper, driving prices sharply higher.
Rio Tinto reported first-half earnings that more than doubled to $12.2 billion U.S. from the same period last year as prices for iron ore and copper surged. The dividend payout, which includes a special one-time payment of $3 billion U.S., is more than the mining giant returned to shareholders for all of 2020 and higher than analysts’ forecast.
The company also announced that it plans to spend $2.4 billion U.S. to build a lithium mine in Serbia. The investment reflects an ongoing push by the world’s biggest mining companies into future facing commodities such as battery metals and fertilizer.
