Rio Tinto slashes dividend as it reports 29% drop in first-half profit

London  — Rio Tinto reported a 29% drop in first-half profit and more than halved its dividend on Wednesday, as weaker iron ore prices due to cooling demand from top consumer China, higher costs and labour shortages hurt the global miner.

It is still the company’s second-highest interim payout ever, following on from the record payout dispensed last year when Rio’s profits benefited from a surge in commodity prices.

Since then, iron ore prices have come under pressure due to persistent demand worries from top steel producer China, with the country’s zero-Covid policy curtailing economic activity and weighing on ferrous markets.