Rio Tinto profit slumps 47% on commodity rout

London - Rio Tinto Group reported a 47% slide in first-half earnings as commodity prices stayed depressed, underscoring the challenges facing the world’s second-biggest mining company.

Underlying profit fell to $1.56bn in the six months through June, from $2.92bn a year earlier, London-based Rio said in a statement on Wednesday. That matched the $1.56bn average estimate from seven analysts surveyed by Bloomberg.

The dividend fell 58% to 45 cents a share, reflecting a new policy that ties the payment to underlying earnings.

The 143-year-old mining giant has cut costs, reined in spending and sold underperforming assets in a bid to weather the commodities crisis sparked by China’s slowing growth and a glut of raw materials.

The company is led by new Chief Executive Officer Jean Sebastien Jacques, 44, who was head of Rio’s copper unit before taking on the top job last month.