Rio Tinto Group has dropped its
policy of maintaining or raising dividends each year as lower commodity
prices cut its annual profit by 51%.
Underlying earnings fell to $4.54bn (£3.13bn) in 2015, from $9.31bn a year earlier.
Rio has held its full-year dividend at $2.15 a share, while the 2016 payout will be no less than $1.10 a share.
It said it was "no longer appropriate to maintain the progressive dividend policy".
Rio has joined other groups including Glencore and Brazil's mining giant, Vale, in adjusting dividend payouts to shareholders.
Balancing the books
Rio chairman Jan du Plessis said:
"With the continuing uncertain market outlook, the board believes that
maintaining the current progressive dividend policy would constrain the
business and act against shareholders' long-term interests."
It reported an annual net loss of $866m, hit by impairment charges of about $1.8bn.
These
charges were due to its Simandou iron ore project in Guinea, which was
affected by Ebola last year, Energy Resources of Australia Ltd, which is
a uranium mine, and the Roughrider uranium project.
Mining
companies, hit by weaker iron ore, copper and aluminium prices, are
under pressure from rating agencies to curb spending to help them
through the worst conditions seen in nearly two decades.
Rio is planning a further reduction in capital expenditure of $3bn and costs of $2bn over 2016 and 2017.
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