Rio Tinto: We Had an “Excellent Year”

Miner Rio Tinto says buoyant conditions in the mining sector in 2005 resulted in a second successive year of record profits. Earnings from diamonds increased by nearly 50 percent to $281 million.

"We enjoyed strong prices for most of our products and an increase in production volumes. In 2005, underlying earnings of just under $5 billion were 118 percent above 2004. Cash flow was 85 percent higher at $8 billion and our regular dividend four percent higher,” Rio Chairman Paul Skinner told the annual meeting of shareholders in Melbourne today.

The miner said that the Argyle Diamonds underground block-caving project is going ahead at a cost of $760 million, which will prolong its 20-year life by at least another 11 years.

“The current strength of the Group's cash flow means that, in addition to comfortably funding current and planned investments, capital can be returned to shareholders without reducing our flexibility to pursue other development opportunities which may arise. We remain in a very strong financial position,” Skinner added.