Aug 6 (Reuters) - Rio Tinto (LONDON:RIO) Ltd RIO.AX :
* Rio Tinto 2015 half year results RIO.AX
* HY net earnings $806 million versus $4.40 billion last year
* HY underlying earnings $2.9 billion versus $5.12 billion last year
* Capital expenditure is expected to decline to around $5.5 billion in 2015 and less than $6.0 billion in 2016
* Interim dividends per share 107.5 cents
* Net debt increased from $12.5 billion at 31 December 2014 to $13.7 billion at 30 June 2015
* We expect reported Chinese growth of around 7 per cent in 2015, down from 7.4 per cent in 2014
* Guidance for 2017 capex remains at around $7.0 billion. each year includes around $2.5 billion of sustaining capex
* As expected at start of year, macro environment and commodity outlook facing mining industry has been challenging"
* Says thermal and metallurgical coal prices have continued along the declining trend they followed through most of 2014
* Share buy-back programme is ongoing with $1.0 billion of Rio Tinto PLC shares expected to be purchased in the second half of 2015
* Production guidance is unchanged from the second quarter operations review
* Expect current cyclical weakness will pass as global economic growth picks up and commodity markets rebalance"
* Says first quarter shipments of heavy Mobile equipment from the major manufacturers were lower than at any time in the prior ten years
* New iron ore supply totalling 110 million tonnes is expected to enter the market in 2015
* Group expects an underlying effective tax rate of approximately 28 to 30 per cent in 2015
* Central exploration expenditure in 2015 first half (post divestments and tax) resulted in a charge to underlying earnings of $56 million
* Recent low prices will continue to put pressure on marginal supply"
* Board expects Rio Tinto Limited to be in a position to pay fully franked dividends for the foreseeable future
* Commodity prices are under pressure, in some cases falling to levels not seen since 2009 in the aftermath of the global financial crisis
* Expects an underlying effective tax rate of approximately 28 to 30 per cent in 2015
* An investment decision on the development of the silvergrass mine is expected in 2016
* Moderating Chinese demand, continued supply growth and downward shifts in industry cost curves are all contributing to weaker markets
* Revised its expectations for 2015 global shipments to 340 million tonnes (100 per cent basis) from its operations in Australia and Canada
* Bauxite, alumina and aluminium production for 2015 is expected to be 43 million tonnes, 8.0 million tonnes and 3.3 million tonnes, respectively
* Guidance for operating cash cost improvement for 2015 full year is increased from $750 million to $1.0 billion
Source text for Eikon ID:nASX1zQYPl