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| Rio Tinto hit by falling prices | Rio Tinto hit by falling prices |
| (11 minutes later) | |
| Anglo-Australian mining giant Rio Tinto has reported its profits have been hit by falling metals and minerals prices in the global economic downturn. | Anglo-Australian mining giant Rio Tinto has reported its profits have been hit by falling metals and minerals prices in the global economic downturn. |
| Its profit for the first six months of 2009 fell to $2.66bn (£1.6bn), down 63.7% from $7.33bn a year ago. | Its profit for the first six months of 2009 fell to $2.66bn (£1.6bn), down 63.7% from $7.33bn a year ago. |
| Rio Tinto sold shares to its existing shareholders earlier in the year and said as a result it had reduced its debt of $39.1bn by $14.8bn. | Rio Tinto sold shares to its existing shareholders earlier in the year and said as a result it had reduced its debt of $39.1bn by $14.8bn. |
| Boss Tom Albanese said despite tricky times, business was "running smoothly". | Boss Tom Albanese said despite tricky times, business was "running smoothly". |
| Job cuts | Job cuts |
| Rio had already announced that it would not be paying a half year dividend, but that it would pay a full year dividend if its results were good enough. | Rio had already announced that it would not be paying a half year dividend, but that it would pay a full year dividend if its results were good enough. |
| We remain cautious about the recent rally in prices Jan du Plessis, chairman, Rio Tinto | |
| As part of its cost-cutting programme, the company announced it had cut 16,000 in the first half of the year, which was ahead of its target of 14,000. | As part of its cost-cutting programme, the company announced it had cut 16,000 in the first half of the year, which was ahead of its target of 14,000. |
| Rio Tinto has also been selling parts of its business, especially units of the US aluminium company Alcan, which it bought in 2007. | Rio Tinto has also been selling parts of its business, especially units of the US aluminium company Alcan, which it bought in 2007. |
| It made $3.7bn of divestments in the first half of the year and has since announced an agreement to sell the Alcan Packaging business for $2.025bn. | It made $3.7bn of divestments in the first half of the year and has since announced an agreement to sell the Alcan Packaging business for $2.025bn. |
| Chief executive Mr Albanese said: "Despite difficult markets, our businesses are running smoothly. | |
| He added that the company was on track to meet the cost-cutting commitments it had made in December. | He added that the company was on track to meet the cost-cutting commitments it had made in December. |
| Arrests | |
| One of the big factors in Rio's profitability is the ongoing talks with Chinese steel mills about how much they are prepared to pay for iron ore. | |
| It has offered a 33% price cut, but has said it is not prepared to sell at the slightly lower price set by Australia's Fortescue Metals Group. | |
| But Rio's chairman Jan du Plessis said the firm remained "cautious about the recent rally in prices". | |
| There is a degree of tension in the negotiations, because four of its staff have been arrested in Shanghai on suspicion of offering bribes. |