Rio Tinto interims rise on soaring iron ore prices; pays special dividend

Rio Tinto on Thursday reported an increase in first-half underlying earnings driven by a soaring iron ore prices as it announced a $1bn special dividend.

Disruptions globally from cyclones in Australia and stoppages in Brazil have put a dent in production levels, helping to push prices higher.

Underlying earnings for the six months to June 30 rose to $4.93bn from $4.42bn billion a year earlier, the miner said in a statement.

The interim dividend was lifted by 19% to 151 cents a share plus a 61 cent-a-share dividend.

Full year iron ore shipments forecasts were maintained at 320m - to 330m tonnes.

Rio Tinto also booked a $800m impairment loss on its Mongolian Oyu Tolgoi copper project. Earlier this month, the miner said it expected costs to blowout by up to $1.9bn with a delay of up to 30 months at the mine.

"We are taking actions to protect the Pilbara Blend and optimise performance across our iron ore system, following the operational challenges which emerged in the first half," said chief executive Jean-Sebastien Jacques.