Rio Tinto announces record first half underlying earnings of $5.8 billion

Record underlying earnings1 of $5.8 billion, 125 per cent above 2009 first half. Underlying EBITDA1 of $11.3 billion, 85 per cent above 2009 first half.

Cash flow from operations up 78 per cent from 2009 first half to $9.9 billion. Net debt reduced to $12.0 billion at 30 June 2010, from $18.9 billion at 31 December 2009. Gearing improved to 20 per cent.

Renewed focus on growth. $3 billion approved in 2010 to date for multiple projects including expansion of Pilbara iron ore, funding for Simandou, increased investment in Ivanhoe, Iron Ore Company of Canada expansion, construction of Eagle nickel/copper mine and the molybdenum autoclave project at Kennecott Utah Copper.

Joint venture agreement signed with Chalco for the development and operation of the Simandou iron ore project in Guinea. $170 million investment approved for the project, associated with optimising mine, rail and port development. Mining operations anticipated within five years. $790 million capital approved for preparation of the expansion of iron ore operations in Western Australia related to marine works and long lead items, to support the Pilbara operations’ overall capacity increase to 330 million tonnes a year and beyond. T

his is in addition to $200 million recently approved for dredging contracts. Full year investment in capital expenditure is expected to approach $6 billion. 2011 capital expenditure anticipated to be approximately $9 billion subject to stable investment conditions. Divestments completed during 2010 first half for total consideration of $3.6 billion. Interim dividend of 45 US cents per share declared, in line with previous guidance.