Rio Tinto cuts dividends, profit falls as it grapples with China weakness

Rio Tinto became the latest mining major to post a slide in annual profit as the industry grapples with weaker demand from its top customer China.

The world’s biggest iron ore miner posted an underlying profit of $US10.9 billion ($17.2 billion), 7.6 per cent lower than a year earlier. It will pay a final dividend of $US2.25 per share compared with $US2.58 in the year before, the company said in a statement.

The world’s top miners are grappling with soft commodity prices in some of their most important markets.Credit: Getty

Rio’s results follow BHP and Glencore, which both reported falls in profit. The world’s top miners are grappling with soft commodity prices in some of their most important markets. Iron ore has been under sustained pressure from China’s property crisis, while coal — a key Glencore earner — has slumped in the face of a supply glut.

Still, Rio proved more resilient than its rivals, after strong growth in its copper business that helped offset weakening iron ore prices.

Nearly all of Rio’s closest peers face near-term declines in copper output, a commodity favoured by many investors. Rio by contrast has a series of growth project coming on stream, including lithium in Argentina, a copper expansion in Mongolia and a giant iron ore project in Guinea.

Rio Tinto CEO Jakob Stausholm said in a statement the company is optimistic about the year ahead.

“We are excited as we head into 2025, with all the building blocks for an incredibly successful, diversified and growing business in place including the expected closing of the Arcadium acquisition in March. We will remain disciplined in the short, medium and long term, while paying attractive returns to shareholders.”

More to come

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