RE: Rio Tinto announces biggest dividend in its 148-year history17 Feb 2021 09:35
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Rio Tinto announces biggest dividend in its 148-year history
Mining group hands $9bn of cash back to shareholders as commodity prices rally
Rio was one of the biggest beneficiaries of China’s rapid recovery from the pandemic © Reuters
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Neil Hume, Natural Resources Editor AN HOUR AGO
6
Rio Tinto, the world’s biggest producer of iron ore, has rewarded investors with the biggest dividend in its history after what its new chief executive described as a “year of extremes”.
The Anglo-Australian miner was one of the biggest beneficiaries of China’s rapid recovery from the pandemic, allowing it to hand $9bn of cash back to shareholders, including a record final dividend of $6.5bn declared on Wednesday.
Rio’s most important commodity — the steelmaking ingredient iron ore — surged almost 85 per cent in 2020 to a nine-year high of more than $175 a tonne on the back of robust demand from China’s vast steel industry.
At the same time, its reputation as one of the best operators in the industry was shredded when it destroyed a sacred Aboriginal site in May to make way for a mine expansion in Western Australia, home to its hugely profitable iron ore business.
The blasts at Juukan Gorge cost Rio’s former chief executive Jean-Sébastien Jacques and two senior lieutenants their jobs after investors and indigenous groups demanded accountability for the incident.
Jakob Stausholm, previously Rio’s finance head, was named chief executive shortly before Christmas. He has made restoring trust with indigenous groups and other stakeholders a priority.
Speaking from Perth after the publication of Rio’s best annual results in almost a decade, Stausholm said the Juukan Gorge blasts were a “dark day for Rio” and had caused considerable damage to its relationship with the Puutu ****i Kurrama and Pinikura people, the traditional owners of the site.
“Earlier this week I visited Juukan Gorge?.?.?. and I personally expressed my deep regret for the damage caused,” Stausholm said. “It was a humbling experience and had a profound impact on me.”
Stausholm was speaking after Rio said underlying earnings — the figure tracked by analysts — rose 20 per cent to $12.4bn in the year to December on revenue of $44.6bn. Net debt fell to $664m from $