Rio Tinto on Wednesday reported its best annual earnings since 2011 and declared a record dividend payout, the second major iron ore producer to return windfalls to investors after unprecedented prices and demand for the steel ingredient.
"But we have also done a lot of deleveraging in the year and we are down to now having less than US$1 billion of net debt. So it's difficult to argue that we should hold back on dividends," Stausholm told a media briefing. Miners are also expected to benefit from an expected rebound in the global economy from the rollout of Covid-19 vaccines.
Rio's half-year dividend plus special dividend was US$6.5 billion compared with BHP's US$5.1 billion payout. Fortescue Metals Group Ltd reports on Thursday. Stausholm told investors he was convinced Rio would find solutions in talks with the Mongolian government, which is seeking more tax revenue from the expansion of Rio's massive Oyu Tolgoi copper-gold mine.
The miner has removed 54 million dry tonnes of iron ore from its reserves after a review of important Aboriginal sites.