SYDNEY – Rio Tinto reported a 20% rise in full-year underlying profits yesterday, as booming iron ore prices saw the miner announce a record shareholder dividend.
The firm posted underlying profits of US$12.4 billion for the year to December 31, with net profits also up more than 20% on-year at US$9.8 billion.
Rio Tinto announced it would pay out US$9 billion to investors, with record dividends worth US$5.57 a share in 2020.
The announcement came a day after fellow Anglo-Australian miner BHP announced a 16% spike in profits and a record dividend of its own, also on the back of soaring prices for iron ore.
Rio’s strong performance was marred by the fallout after it admitted blowing up a 46,000-year-old Aboriginal heritage site in Western Australia’s Pilbara region to expand an iron ore mine.
The destruction of the ancient rock shelters at Juukan Gorge sparked a public backlash and investor revolt that led the chief executive officer and two top officials to resign in September.
Newly installed chief executive officer Jakob Stausholm, who took up the role in December, said it had been an “extraordinary year” for the company.
“Our successful response to the Covid-19 pandemic and strong safety performance were overshadowed by the tragic events at the Juukan Gorge, which should never have happened,” he said.
Stausholm said the new executive team “must earn the right to become a trusted partner for traditional owners... but we all recognise that this will require sustained and consistent effort”.– AFP, February 17, 2021
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