Rio Tinto (LON:RIO) has released the details of its new share buy-back programme. It intends to return roughly $3.2 billion of post-tax coal disposal proceeds to its shareholders.
The proceeds will be returned through a $3.2 billion share buy-back initiative. Moreover, the programme will combine an off-market buy-back tender targeting up to 41.2 million Rio Tinto Limited shares ($1.9 billion). Additionally, it will also include further on-market purchases of Rio Tinto shares. However, the programme remains subject to market conditions and compliance with all laws and regulations.
J-S Jacques, Rio Tinto’s Chief Executive, has commented:
“Returning $3.2 billion of coal disposal proceeds demonstrates our commitment to capital discipline and providing sector leading shareholder returns.”
“We continue to focus our portfolio on those assets which provide the highest returns and growth”
Moreover, this “will ensure that we continue to deliver superior value to our shareholders in the short, medium and long term”.
Founded almost 150 years ago, Rio Tinto remains one of the world’s largest producers of essential materials. Today, the company is one of the world’s largest metals and mining corporations.
At 10:11 BST today, shares in Rio Tinto plc were trading at +1.96%.
Earlier this July, we reported that Rio Tinto was ahead of targets for iron ore exports.
