Under the plan, the company has issued a redemption notice for roughly $1.5 billion of its 2017 and 2018 US dollar-denominated notes and commenced cash tender offers to purchase up to approximately $1.5 billion of its 2019, 2020, 2021 and 2022 US dollar-denominated notes.

The company said it was taking advantage of its strong liquidity position to continue its capital management program.

Rio completed $4.5 billion in cash tender offers earlier this year.

In the first half of 2016, Rio cut net debt by 6% to $12.9 billion. It had a gearing ratio of 23%.

Rio shares closed A31c higher yesterday at $50.38.