Rio Tinto pays out its largest dividend in history

Rio Tinto (ASX, LON, NYSE: RIO) has rewarded investors with the largest dividend in its 148-year history and has set out plans to tackle the huge carbon footprint of its global customers in an effort to forsake what his new boss called a "year of extremes". The world's second largest mining company is paying out $ 9 billion in cash to its shareholders, including a record dividend of $ 6.5 billion. The windfall comes as iron ore prices, Rio's premier commodity, rose nearly 85% in 2020 to a nine-year high of more than $ 175 a ton. In his first address since taking office in January, Jakob Stausholm said he would endeavor to restore confidence in the company, which was shaken after it destroyed an Aboriginal holy site to make room for an iron ore mine expansion in Western Australia create. The explosions in the Juukan Gorge cost former CEO Jean-Sébastien Jacques and two other senior executives their jobs as investors and indigenous groups held accountable for the incident. Rio's new boss on Wednesday promised to work with traditional owners as the company continues to expand its flagship iron ore division. Stausholm's comments were made in the context of the release of Rio's results for 2020. Adjusted profit increased 20% to $ 12.4 billion for the period. Net debt fell to $ 664 million from $ 3.65 billion. Income before taxes was $ 15.4 billion, compared to $ 11.1 billion in 2019. Stausholm said 2020 was an "exceptional year" for Rio, but also one of "extremes." "Our successful response to the Covid-19 pandemic and our strong security stand were overshadowed by the tragic events in Juukan Gorge that should never have happened," he said. Stausholm also announced that the group is reversing a previous stance on Scope 3 - the emissions generated by customers through the use of its products - by acknowledging its role in the use of the raw materials it mines by third parties. Rio Tinto is the world's largest iron ore producer, a commodity that is responsible for around 90% of its profits. Given its enormous dependence on the steel industry, which is one of the world's largest polluters, the company has come under increasing pressure to make steelmaking more environmentally friendly. In steel making, iron ore is mixed with coking coal to make the alloy and is responsible for up to 9% of global greenhouse gas emissions. The mining giant vowed to spend $ 1 billion over five years in 2020. The ultimate goal was to have "net zero" greenhouse gas emissions by 2050. Rio also said at the time that its total Scope 1 and Scope 2 emissions (indirect emissions from the generation of purchased energy used by a company, such as electricity) would be 15% below levels by 2030 by 2018 would be. However, the company did not set a target to reduce Scope 3 emissions, arguing that it was almost impossible to control how steelmakers use the iron ore it supplies them. Rio said Wednesday that it will now work with its customers to reduce the carbon intensity of steel production by at least 30% from 2030. The company also aims to achieve carbon neutral steelmaking, carbon-free aluminum and net-zero emissions from shipping by 2050.