Rio Tinto doubles profits

Half-year profits at mining giant Rio Tinto soar based on strong demand and high commodity prices. ┬á Rio Tinto Ltd., the worldÔÇÖs third-largest mining company, said today that its net half-year profit more than doubled on strong demand for iron ore and other metals.┬á Reporting results for the six months ending June 30, the companyÔÇÖs net earnings totaled $6.91 billion from $3.25 billion the year before, an increase of 113 percent, largely due to higher commodity prices and production, particularly iron ore. Rio Tinto also said its underlying earnings, or earnings before interest and tax, rose 55 percent to $5.47 billion, in line with analystsÔÇÖ forecasts.┬á ÔÇ£The group continues to perform strongly, and the outlook remains positive,ÔÇØ Rio Tinto chairman Paul Skinner said in a statement.┬á Rio Tinto is reaping rewards from the rapid urbanization of China and other developing nations, which has been driving greater demand for commodities and increasing commodity prices for the past seven years.┬á Rio Tinto, based in London and with offices in Melbourne, is the focus of a hostile takeover proposal from rival Anglo-Australian miner BHP Billiton Ltd. The company rejected BHP BillitonÔÇÖs offer of $147 billion in February of this year. ┬á The company said it remained confident about its prospects, and that the continuing difficulties in the global credit markets were not affecting demand for commodities. It further reiterated its opinion that BHPÔÇÖs offer price for the company was too low. ┬á