RioTinto will hand investors the largest dividend in its 148-year history as it cashes in on a mining bonanza. The company will pay out £6.5 billion, equal to 400p per share, after a surge in the price of steelmaking ingredient iron ore boosted profits by more than a third. Iron ore rose in value by almost 85% last year, climbing above $175 a tonne, as demand rocketed from China’s steel industry. The country has been stockpiling the commodity as it plans to unleash a post-Covid economic boom. Rio’s bumper pay-out came a day after fellow FTSE 100 miners BHP and Glencore promised to hand investors huge sums – £3.7 billion and £1.2 billion respectively – after they too benefited from rising commodity prices. The results have added to growing speculation that the market is entering another ‘supercycle’ that will see the prices of commodities soar. A construction boom in China, economic stimulus in the US, the green revolution and lower stocks of commodities are all forecast to bolster prices for years to come. Commentators believe this is another example of the strong pay-outs on offer in the sector and the likely ability, and intent for this to continue, especially as iron ore prices stay elevated, should help to underpin share prices.

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