Rio Tinto posts smallest first-half profit in five years
Iron ore prices eased in the first half of the year as steel production in top consumer China declined and more supply from Australia, Brazil and South Africa came to the global market, denting Rio Tinto's earnings from the steelmaking raw material.
Expectations that China will curb overcapacity in the steel sector and restocking before the end of the year could underpin a pickup in prices to $100 (R1,787) per metric ton towards the year-end, according to a note by Morgan Stanley.
Rio Tinto, the world's largest iron ore producer, reported underlying earnings of $4.8bn (R85.7bn) for the six months ended June 30, missing a Visible Alpha consensus of $5bn (R89.3bn). This was the company's weakest first-half performance since 2020.
Last year it reported underlying earnings of $5.7bn (R101.8bn).
Rio Tinto, which is increasingly shifting its focus to copper, declared an interim dividend of $1.48 (R26.4) per share for the first half of the year, lower than the $1.77 (R31.63) apiece it gave out last year.
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2 hours ago
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The Citizen
15 hours ago
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Scaling up climate and energy finance is not only urgent, but also central to closing the infrastructure gap, addressing energy poverty, and driving structural transformation and industrialisation," Ramokgopa said. "We must shift from pledges to execution, from fragmented flows to coordinated and catalytic investment." Ramokgopa underscored the dire necessity to address systemic underinvestment in transmission, distribution, and generation capacity. He advocated for a financing structure that ensures long-term affordability, particularly for vulnerable and energy-poor communities. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Central to this strategy is the establishment of de-risking mechanisms aimed at attracting private capital while preserving essential public oversight. Ramokgopa also highlighted the importance of expanding access to concessional and blended finance for early-stage and localised energy projects, prioritising small and medium enterprises in the energy value chain. So far, South Africa has secured pledges totalling up to $12.8 billion from international partners, with over $760 million earmarked for grant funding. Recently, the country entered into a $474m loan agreement with the African Development Bank (AfDB) along with a €500 million arrangement with the German Cooperation via KFW Development Bank, both crucial for funding the JET initiatives. However, Ramokgopa cautioned that renewable energy sources alone - particularly in regions with variable resources, legacy baseload infrastructure, or limited grid flexibility - were insufficient to satisfy all system requirements. He said for a pragmatic approach, South Africa had to utilise a mix of technologies, which includes Carbon Capture, Utilisation and Storage (CCUS) to reduce emissions from hard-to-abate sectors and existing fossil assets, Small Modular Reactors (SMRs) as a dispatchable, low-emission baseload option suitable for diverse geographies and carbon removal, and long-duration storage technologies to offset residual emissions and enhance system resilience. Ramokgopa said demand-side and system flexibility tools, including digital technologies, to balance load and optimise system operations also had to be considered. "A technology-inclusive approach ensures that countries can select solutions aligned with their energy mix, infrastructure readiness, and industrial strategy," he said. "It also expands investment options, supports innovation, and avoids prematurely locking out viable low-carbon technologies. The transition must be both ambitious and anchored in the realities of implementation." Ramokgopa's clarion call extends beyond South Africa's borders, urging the G20 to fully and practically implement Sustainable Development Goal 7, which aims to ensure access to affordable, reliable, sustainable, and modern energy for all. This, he said, requires mobilising adequate and appropriate climate and development finance, modernising grid infrastructure at scale, supporting public-private partnerships to accelerate implementation and enabling context-specific, country-led energy transition pathways that consider national priorities and the global imperative to address climate change. "Each country must retain the right to determine its pathway, based on national priorities, institutional capacity, and existing energy systems. There is no single model. No uniform pace. No imposed prescription," Ramokgopa said. BUSINESS REPORT
