Rio Tinto Shares Rise After Buyback; Likely to Boost PICK ETF

Shares in Rio Tinto PLC (RIO.LN) rose 2.3% in London on Thursday after the Anglo-Australian mining company launched a $3.2 billion share buyback, a market move that helped boost exchange-traded fund PICK.

--According to fund issuer BlackRock, Rio Tinto accounts for 7.37% of the total PICK ETF, behind rival BHP Billiton Ltd. (BHP.AU), which represents 9.46%.

--The ETF, iShares MSCI Global Metals & Mining Producers (PICK), has net assets of $384.2 million. Its shares rose 2.3% in early trade at $32.55.

--Rio Tinto's share buyback is part of a move to return proceeds from the sale of coal assets to its shareholders. Its London-traded shares at 1351 GMT rose 84.50 pence to 3,807 pence.

--Investment bank Jefferies said it also expects proceeds from the $3.5 billion sale of its Grasberg mine in Indonesia to be returned to shareholders.

Write to Oliver Griffin at oliver.griffin@dowjones.com; @OliGGriffin

(END) Dow Jones Newswires

September 20, 2018 10:16 ET (14:16 GMT)

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