Lower commodity prices hit Rio's bottom line

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Lower commodity prices hit Rio's bottom line
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Lower commodity prices has hit RioTinto's revenues, with profits falling 28% in the half year mining resources copper ironore lithium

PERTH – Mining major Rio Tinto has seen a 28% drop in profits after tax for the interim period of 2022, and a 26% fall in underlying earnings before interest, taxes, depreciation and amortisation when compared with the same period in the 2021 financial year.

The miner told shareholders that the lower earnings reflected the movement in commodity prices, the impact of higher energy prices on its operations and higher rates of inflation on its operating costs and closure liabilities.The miner in June made a $1.

Rio on Wednesday told shareholders that capital investment in 2022 reached $7.5-billion, and the miner is expecting its share of investment in 2023 and 2024 to reach between $9-billion and $10-billion, which includes the ambition to invest up to $3-billion in growth per year, depending on opportunities.

In addition, Rio’s guidance includes around $1.5-billion over the next three years on decarbonisation projects, mainly relating to repowering the Pilbara, which will accelerate from 2025, bringing its best estimate to around $7.5-billion, in aggregate from 2022 to 2030.

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