PERTH (miningweekly.com) – Diversified major Rio Tinto has nearly doubled its half-year net profit and announced a total cash return of $3-billion to shareholders.

The group’s net earnings soared 95% from $1.7-billion to $3.3-billion and the miner generated operating cash flow of $6.3-billion.

Underlying earnings before interest, taxes, depreciation and amortization rose sharply from $5.3-billion to $9-billion in the six-month period.

Consolidated sales revenue increased by $3.8-billion, to $19.3-billion, owing to higher average commodity prices, while underlying earnings were up 152%, to $3.9-billion, driven by the $2.7-billion post-tax impact of higher prices.

“These are strong results, operating cash flow was $6.3-billion and we met our $2-billion cash cost reduction target six months early,”  CEO Jean-Sebastian Jacques said on Wednesday.

Regarding cash returns to shareholders, he announced an interim dividend of 110c a share, equivalent to $2-billion, which would be paid on September 21.

The group has also increased its share buyback by $1-billion in Rio Tinto plc shares. This is in addition to the $0.2-billion remaining from the $0.5-billion buyback programme announced in February.

“By driving performance, focusing on cash and allocating it with discipline, we are delivering superior cash returns to our shareholders,” Jacques said.

He added that Rio Tinto was “shifting gear” to focus on the untapped value from its productivity programme and continued to strengthen its portfolio.

“We announced the sale of our thermal coal business in Australia for $2.7-billion and are making good progress on our compelling growth projects – Oyu Tolgoi, Amrun and Silvergrass.”

Capital expenditure (capex) during the interim period increased by 33% on the previous corresponding period, to $1.75-billion of which $0.7-billion was sustaining capex.

Looking ahead, Rio expected capex to remain at about $5-billion in 2017, and about $5.5-billion in 2018 and 2019, with each year including between $2-billion to $2.5-billion of sustaining capex.

Additional cumulative free cash flow of $5-billion was also expected from the end of 2017 to the end of 2021, from productivity improvements.