World’s second largest mining firm Rio Tinto slashes payout policy

Rio Tinto has scrapped its generous payout policy in the face of a bleak outlook for the global economy after it slumped to a net loss for 2015 and posted its worst underlying earnings in 11 years.

The dividend decision gives the world’s second largest mining firm flexibility to pursue acquisitions in future, analysts said.

Chief executive Sam Walsh acknowledged his team was keeping an eye out for top-tier assets, particularly in copper.