2013 underlying earnings of $4.2 billion down 18 per cent reflect lower average market prices and a higher effective tax rate, partly offset by record iron ore shipments and cost savings momentum.
Net earnings of $1.7 billion include non-cash exchange losses of $1.9 billion and a $0.3 billion write-off of waste stripping costs and damaged equipment at Kennecott Utah Copper following the pit wall slide at Bingham Canyon in April.
15 per cent increase in interim dividend to 83.5 cents per share.
Actions underway to achieve the three priorities for 2013:
Improving performance
Cost reductions gathering momentum. $1.5 billion of total cost improvements achieved, including $977 million of operating cost improvements and $483 million from lower exploration and evaluation spend in the first half of 2013.
Net headcount reduction of 2,200 since 30 June 2012 across the Group, after taking into account 1,800 new roles in iron ore to support the expansions.
Operations performing well with record first half iron ore production and stronger copper volumes, with the recovery at Bingham Canyon advancing faster than previously expected.
Strengthening our balance sheet
Capital expenditure reduced by nine per cent to $7 billion. 2013 capital expenditure is expected to be around $14 billion, 20 per cent lower than the peak capex of 2012.
Funding and development of the phase 2 Oyu Tolgoi underground expansion delayed until discussions with the Government of Mongolia are concluded on a range of matters and a new timetable has been agreed.
Delivering results
Oyu Tolgoi copper-gold open pit mine and concentrator in production and consistently operating at more than 80 per cent of design capacity.
Phase one Pilbara iron ore expansion to 290 Mt/a on budget and on time to deliver first tonnes during September 2013.
Argyle diamonds underground mine commissioned in April 2013.
Kestrel coking coal mine in production and ramping up in the second half of 2013.
$1.9 billion of non-core business divestments announced or completed to date in 2013.
About Rio Tinto
Rio Tinto is a leading international mining group headquartered in the UK, combining Rio Tinto plc, a London and New York Stock Exchange listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange.
Rio Tinto's business is finding, mining, and processing mineral resources. Major products are aluminium, copper, diamonds, thermal and metallurgical coal, uranium, gold, industrial minerals (borax, titanium dioxide and salt) and iron ore. Activities span the world and are strongly represented in Australia and North America with significant businesses in Asia, Europe, Africa and South America.