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HomeMongolia NewsRio Tinto signals end to era of record mining returns

Rio Tinto signals end to era of record mining returns

Rio Tinto has signalled an end to the era of record returns in the mining sector, as the Anglo-Australian group reported a sharp drop in half-year profit and more than halved its dividend payment.

This time a year ago, the world’s biggest producers of raw materials were basking in the glow of soaring metal prices as lockdown restrictions eased and demand picked up.

But the industry is now facing a vicious margin squeeze as fears of a demand-sapping recession drive commodity prices lower while the cost of everything from diesel to explosives soars.

At the same time, a deepening crisis in the property sector is raising concerns about demand from top commodity consumer China.

Rio, the world’s largest producer of steelmaking ingredient iron ore, reported underlying earnings of $8.6bn for the six months to June, down from a record $12.2bn last year, on sales of almost $30bn.

The company, which is the first of the big miners to report…

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