%Mining giant %RioTinto (ASX: RIO) has reported its lowest first-half profit since 2020 and reduced its dividend payment to shareholders due largely to declining iron ore prices.
The world’s largest %IronOre producer posted earnings of $4.81 billion U.S. for the six months ended June 30, down 16% from a year earlier and below the $5.05 billion U.S. expected on Wall Street.
Management blamed the miss on prices the miner received for its iron ore, which fell by 15%. However, that was partly offset by higher prices for copper, aluminium, and gold.
Rio Tinto, which is increasingly shifting its focus to copper and lithium, declared a $1.48 U.S. per share dividend, down from $1.77 U.S. last year.
The Melbourne, Australia-based company also faces higher costs as it continues to move towards cutting its carbon emissions by 50% at decade’s end.
Costs also rose as Rio Tinto brought new lithium and copper projects online. The company is reportedly planning to sell its titanium unit.
Rio Tinto is also contending with U.S. tariffs, noting that the company’s aluminium business in Canada is struggling under the weight of 50% U.S. import duties that went into effect June 4.
However, the big issue for remains iron ore prices, which have slumped on lower steel production in China, the world’s top consumer of the active ingredient in steel products.
RIO stock has declined 2% this year to trade at $115.81 Australian dollars ($74.76 U.S.) per share.
