Rio Tinto's record 2021 profit masks challenges to growth outlook

Rio Tinto Group posted record profit for 2021 on strong demand for iron ore from China. Repeating the result may prove difficult, as it grapples with an uncertain demand outlook, rising cost pressures, and challenges to its growth projects.  

The world’s top iron-ore producer reaped annual underlying earnings of $21.4 billion, according to a company statement Wednesday, surging 73% from the prior year and broadly in line with a median estimate. Rio will reward shareholders with a final dividend totaling $6.7 billion and, despite the immediate headwinds, is buoyant about its long-term prospects.

“We have a portfolio that is well positioned, and