Rio Tinto, the world’s largest producer of iron ore, rewarded investors with a record final dividend of $ 6.5 billion by announcing new carbon emission targets.
The Anglo-Australian miner will pay a final dividend of $ 3.09 per share, plus a one-time payment of 93 cents per share. In addition to its semi-annual dividend, Rio returned $ 9 billion to shareholders for its last fiscal year.
Rio’s exceptional dividend comes in a commodity price rally as the global economy recovers from the coronavirus-induced crisis of 2020, aided by government and central bank support and supply disruptions.
Iron ore, Rio’s most important raw material, jumped nearly 85% last year to a nine-year high of over $ 175 a tonne due to strong Chinese demand and disruption in the offer in Brazil.
In the year ending December, operating profit – the figure tracked by analysts – rose 13 percent to $ 12.5 billion. Net debt fell to $ 664 million from $ 3.65 billion.
On emissions, Rio said it will invest in technologies that can reduce the carbon intensity of steelmaking by at least 30% from 2030.