Rio Tinto, the world's largest iron ore producer, announced on Wednesday that its underlying earnings for the first half of the year fell to their lowest in three years due to easing iron ore prices, offsetting an uptick in shipments from its Pilbara operations.
Iron ore accounts for 70% of Rio Tinto's profit, and the company is cautiously optimistic about China's economy for the remainder of the year.
The Anglo-Australian miner also announced a dividend cut to $1.77 per share, below last year's $2.67, and cited a shortage of skilled workers in a tight labor market and supply chain issues.
Despite lower commodity prices, Rio Tinto continues to see solid demand for its products in China, the world's largest steel producer.
