Profits plummet for Rio Tinto as operations costs surge

The world's second largest miner, Rio Tinto, reported a 10% decline in full year profit as currency rates affected strong demand in China.

Rio Tinto Group comprises dual-listed sister companies Rio Tinto Limited (based in Melbourne, Australia) and Rio Tinto plc (based in London).

Full year adjusted net income came in at $1.382bn (€1.108.2bn) compared with $1.530bn (€1.226bn) the year before, in line with most analyst forecasts.

Full year sales were up to $11.755bn (€9.426bn) from $10.828bn (€8.683bn).

Strong demand for its steel and iron products in China and a rise in commodity prices over the year were stemmed by currency movements.

The strengthening Australian dollar against its US counterpart brought sharp operational cost increases.