Commodity price falls push Rio Tinto profits down 22%

Global mining giant Rio Tinto has suffered a 22% drop in profits for the first half of 2012 as weak commodity prices hit growth.

The Anglo-Australian miner, which is the second largest globally, reported $5.9bn in net profits, down from $7.6bn a year earlier, according to the BBC. Chief executive Tom Albanese blamed the fall on continued volatility in markets, which have created challenging conditions. He pointed out while most commodity prices had fallen, the price of gold was up 14%. Gold traded at $1,611 per ounce at 9.30am, according to BBC data. Despite weaker profits, Rio Tinto is sticking to its $16bn capital spending plan for 2012. It is also optimistic about its prospects due to cost-cutting efforts...