Global economic difficulties and decline in commodity prices sharply declining revenue impact on the largest mining company, Rio Tinto. Rio Tinto’s earnings decline for six months until June 30 declined 50 percent. Rio Tinto company reported a decline in income during the six months to June 30, profit before tax for the period amounted to $ 4.39bn, compared with $ 9.82bn during the same period the previous year, sales fell to $ 19.52bn from $ 30bn.

‘Prices declined for nearly all of Rio Tinto’s major commodities; average copper and aluminium prices were 50 per cent lower while average molybdenum prices were 74 per cent lower than 2008 first half,’ the firm said.

Coal prices were also sharply lower, it added.

‘We remain cautious about the recent rally in prices,’ said chairman Jan du Plessis, who was appointed in April and will soon leave his position as chairman of British America Tobacco.

‘However, the expectation that development in emerging markets will generate underlying strength in metals and minerals demand over the long term remains broadly unchanged.’

Copper prices have rallied by about 80% since the beginning of the year, while aluminium prices have rebounded by about 65% since lows in February.

Rio has been taking measures to cope with the downturn, including laying off 16,000 staff during the first half, ahead of its target of 14,000, cancelling the interim dividend, announcing a rights issue and divesting acquisitions.

On Tuesday it announced that it had received a $2.025bn offer for the majority of its Alcan packaging business, taking the total gained from divestments during 2009 to $3.7bn.

Find More Other News : Coal, Company, Mine Trade & Market, Mining Finance