Aug 3 (Reuters) - Rio Tinto (LON:RIO) Ltd RIO.AX :
* Rio Tinto 2016 half year results RIO.AX
* HY underlying earnings of $1.6 billion, $1.4 billion lower than 2015 first half
* HY net earnings $1.713 billion versus $806 million a year ago
* Has announced an interim dividend of 45 US cents per share
* Intention of the board is that the total full year dividend will be not less than 110 US cents per share, equivalent to $2 billion
* Operating cash cost improvements of $2 billion (pre-tax) expected over 2016 and 2017, in line with previous guidance
* Maintained a strong balance sheet with net debt of $12.9 billion and gearing of 23 per cent, in the lower half of the targeted range"
* Capital expenditure expected to be around $4.0 billion in 2016, around $5.0 billion in 2017 and around $5.5 billion in 2018
* Development of the oyu tolgoi underground copper mine in Mongolia first tonnes expected in 2020, with average production of 560 thousand tonnes between 2025 and 2030
* Operating cash cost improvements (including exploration and evaluation savings) of $2 billion (pre-tax) expected over 2016 and 2017
* Continuing to target 20 to 30 per cent gearing ratio through the cycle"
* Global growth forecasts for 2016 have been downgraded to around three per cent, matching the pace of the past few years."
* Expects total cash returns to shareholders over longer term to be in a range of 40 to 60 per cent of underlying earnings in aggregate through the cycle
* The board expects Rio Tinto Limited to be in a position to pay fully franked dividends for the foreseeable future"
* In the first half of 2016, the global economy was more resilient than markets had anticipated
* Says "growth in China has stabilised, but it is on a long transition path of slower and less commodity-intensive growth"
* The intention of the board is that the total full year dividend will be not less than 110 US cents per share, equivalent to $2 billion
* Global macro-economic environment is still fragile
* Group expects an underlying effective tax rate of approximately 27 to 30 per cent in 2016
* Says UK's brexit vote in June risks further undermining confidence across the eurozone
* Source text for Eikon ID:nASX77K6ry
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