Rio Tinto Profit Falls 59% (RIO, BHP, VALE, GLNCY, XSRAY)

One of the world’s largest mining companies, Rio Tinto plc (NYSE: RIO) saw its profits fall by 59% in 2011, almost entirely due to a $9.3 billion impairment charge on its aluminum business. The company paid $38 billion in 2008 for Canadian aluminum miner Alcan, a top price at the top of a market that was just about to crash.

Other large miners, BHP Billiton plc (NYSE: BHP) and Vale SA (NYSE: VALE), have also faced some profit pressure as China’s economy has slowed somewhat and demand for iron ore and other commodities has softened. It remains to be seen what impact the proposed acquisition by Glencore International plc (OTC: GLNCY) of Xstrata plc (OTC: XSRAY) will have on the other big mining companies.

Rio’s CEO and CFO have rejected their annual bonuses as a result of the impairment charge, but the company did raise its annual dividend by 34%, to $1.45. That should ease investors’ pain a bit.