Rio Tinto, the world’s greatest producer of iron ore, has rewarded traders with a file $6.5bn closing dividend because it introduced new carbon emission objectives.
The Anglo-Australian miner can pay a closing dividend of $3.09 a share, plus a one-off fee of 93 cents per share. Added to its half-year dividend, Rio has returned $9bn to shareholders for its most up-to-date monetary 12 months.
Rio’s bumper dividend comes amid a rally in commodity prices as the worldwide economic system recovers from the coronavirus-induced droop of 2020, aided by authorities and central financial institution assist and provide disruptions.
Iron ore, Rio’s most essential commodity, surged nearly 85 per cent final 12 months to a nine-year excessive of above $175 a tonne on the again of strong Chinese language demand and provide disruptions in Brazil.
Within the 12 months to December, underlying earnings — the determine tracked by analysts — rose 13 per cent to $12.5bn. Web debt fell to $664m from $3.65bn.
On emissions, Rio stated wouldn’t it put money into applied sciences that might ship reductions within the carbon depth of steelmaking of at the very least 30 per cent from 2030.