Anglo-Australian diamond mining giant Rio Tinto has begun the process of offering a $15.2 billion rights issue, aimed at reducing the company's debt, and to strengthen its financial position, Mining Weekly reported.



The mining giant, that mines commodities such as diamonds, iron ore and aluminum, announced earlier this month it was terminating a $19.5 billion investment agreement with Aluminum Corporation of China (Chinalco).



Rio Tinto chairman Jan du Plessis said in a letter to shareholders that the step is intended to “take advantage of future potential value-creating opportunities”. The company also said that the outlook for the balance of this year remained “uncertain”.



“The key driver of earnings in the second half of the year is expected to remain the pricing of the group’s key commodities, particularly iron ore, aluminium and copper," Du Plessis said in the letter.

Net profit for Rio Tinto fell 45% on year to $1.6 billion with a big hit from its aluminum and copper divisions, while the company's iron ore mining had posted profits of 8% on year to just under US$990 million. The company's overall sales dropped nearly 30 per cent to US$9.5 billion.