Rio Halves Dividend as Dark Clouds Gather for Mining Giants
- Miners have been hit by falling prices, higher costs
- Rio’s shares fall after company halves dividend payout
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Rio Tinto Group reported a sharp decline in first-half profit and cut its dividend in half, in the latest sign that a bonanza era of record returns across the mining industry is nearing an end.
A year ago, the world’s biggest producers were enjoying super-sized returns, after key commodities like iron ore and copper surged. Now, profit margins are being squeezed as recessionary worries drive prices lower while costs across the sector are ballooning.