Rio Tinto, the world’s biggest iron ore miner, posted record first-half profits on July 28, with underlying earnings almost tripling to $12.17 billion from the same period a year earlier.
The surging profits were largely built on the back of the rise in iron ore prices to record highs, despite Rio shipping 12% less iron ore in the second quarter, compared to the same period a year earlier, as storms affected its Western Australia state operations.
Australia’s second- and third-ranked iron ore miners, BHP Group and Fortescue Metals Group, have yet to report quarterly financial results, but are likely to join Rio in reporting record profits.
BHP reported record full-year iron ore production for the 12 months to end June, although output in the fourth quarter dipped slightly, while Fortescue beat its full-year estimate for iron ore shipments on the back of a record fourth quarter performance.
The spot price of iron ore for delivery to north China, as assessed by commodity price reporting agency Argus, slumped at the end of last week, dropping to $180.15 a tonne, down 10.5% from a week earlier.
