MELBOURNE: Australia-based mining giant Rio Tinto today reported record earnings of US$21.4 billion last year, on the back of soaring iron ore prices and solid demand from China.
Earnings were up 72% versus 2020, reaching the highest levels in Rio’s 149-year history, as iron ore earnings roughly doubled.
Rio Tinto chief executive Jakob Stausholm cited “significant price strength for our major commodities”, as he announced a record dividend to shareholders.
Australia is the world’s largest iron ore exporter, and the product has been a mainstay of the country’s economy for decades.
Despite political tensions with Beijing, Australian producers continue to sell vast quantities of the material that is turned to steel and ends up in Chinese-made cars, fridges and buildings.
China accounted for more than 57% of Rio’s sales for the year, rising from US$26 billion to US$36 billion year-on-year.