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Rio Tinto more than doubles dividend, launches US$1bn share buy-back as profits jump

The FTSE 100-listed miner reported pretax profit of US$4.96bn for the six months to June 30, up from US$2.10bn a year earlier
Old miner
Rio Tinto will pay an interim dividend of 110.0 US cents per share, more than double the 45.0 US cents paid in 2016

Rio Tinto PLC (LON:RIO) has more than doubled its interim dividend and launched a US$1.0bn share buyback as it reported strong growth in first-half profits.

The FTSE 100-listed miner reported pretax profit of US$4.96bn for the six months to June 30, up from US$2.10bn a year earlier.

The group saw its first half revenue rise to US$19.32bn, up from USS15.50bn a year earlier, which it said was primarily due to higher average commodity prices.

READ: Rio Tinto cuts its forecasts for iron ore shipments due to bad weather, rail line modernisation work

Rio Tinto will pay an interim dividend of 110.0 US cents per share, more than double the 45.0 US cents paid in 2016.

The miner also said it will launch a US$1.0bn share buyback to be completed by the end of 2017.

The group noted that the dividend and share buyback combined make for a US$3.00bn cash return to shareholders.

Rio’s chief executive Jean-Sebastien Jacques said: “We are now shifting gear to focus on the untapped value from our productivity programme and continue to strengthen our portfolio to build higher returns for the future.”

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