Mining giant Rio Tinto releases its performance report for the first half of 2010, saying it hit a record underlying earnings of $5.8 billion – up 125% above the corresponding period in 2009.

According to the diamond explorer's report, its underlying EBITDA (Earnings before interest, taxes, depreciation and amortization) for the first half of 2010 stood at $11.3 billion – 85% over H1-2009.

Cash flow from operations came to $9.9 billion (+78%), net debt reduced to $12 billion and gearing improved to 20%.

On diamonds, Rio Tinto noted that demand and prices for rough diamonds improved significantly as the worldwide economy emerged from the global financial recession.

Rio Tinto's report also cited renewed focus on growth, with $3 billion approved in 2010 for multiple projects, including the expansion of Pilbara iron ore, funding for Simandou, increased investment in

iron ore in Canada, construction of the Eagle nickel/copper

mine, and the molybdenum autoclave project at Kennecott Utah Copper.

The company also approved a $170 million investment in the Simandou iron ore project in Guinea and a $790 million investment in the expansion of a marine iron ore operations in Western Australia.

Rio Tinto’s Chairman Jan du Plessis said: “This was an outstanding half reflecting higher prices and Rio Tinto’s strengths in operational excellence. Our business is robust with a strong balance sheet which is able to withstand volatility or further shocks from the global economy."

Tom Albanese, Rio Tinto’s CEO added that, "Safety remains the highest priority throughout Rio Tinto. This year we have seen further reductions in the frequency of lost time injuries and also in the rate of all injuries. Regrettably we have suffered two fatalities at managed operations. We continue to work towards our goal of zero harm.

I believe that our excellent safety record together with our focus on process safety positions us as the leader in our industry in this critical area.

“Our strategic focus on large, long-life, low-cost assets – those that remain profitable through all parts of the economic cycle – will serve us well in an increasingly volatile world.”