Rio Tinto is riding high on China's need for steel to set up industries.
The resurgence of the economy in China has helped the mining industry make record profits with Rio Tinto announcing a 125% increase in profits for the first half of 2010. It reported profits to the tune of $6.4 billion.
Rio was not the only company riding the Chinese boom. Ferrexpo the Ukrainian iron ore producer also reported that its profits had gone up by 257%.
Tom Albanese, the chief executive of Rio Tinto is expecting the demand for iron ore to slow down in the second half of 2010 as the Chinese government is now bringing down its factory construction. The European demand for steel which is also used to make cars has not quite picked up after the recession.
Share holders in the Anglo-Australian company, Rio Tinto would be happy as of now with the company reinstating its interim dividend at US45 cents per share. A payout which had been skipped last year due to the global financial crisis.