Rio Tinto paid US$4.5 billion in taxes and royalties in 2015, according to the company’s latest tax report, as well as spending almost US$18 billion buying goods and services.
“Rio Tinto continued to provide a significant direct benefit to the governments and communities where we operate,” said its Chief Financial Officer, Chris Lynch. “The US$4.5 billion we paid in taxes and royalties last year takes out total contribution to US$47.3 billion since 2010.”
Australia benefitted most from Rio Tinto’s tax and royalty payments with the country as a whole receiving US$3.32 billion in 2015. Of that US$1.55 billion was federal level corporate income tax.
Western Australia – the home of Rio Tinto’s giant iron ore mining operations - received US$1.08 billion in royalties, while the coal states of Queensland and New South Wales received US$150 million and US$145 million, respectively.
Compared to Australia, Rio’s tax contributions elsewhere were much lower. Canada was the next largest recipient with London-based mining company paying US$345 million to the federal and various provincial and local governments.
Mongolia, home to the giant Oyu Tolgoi copper project, received US$278 million and Chile, US$196 million. France, South Africa, Guinea, Singapore, the UK, Peru, Iceland, Switzerland, the Netherlands, China and the US also received tax payments from Rio Tinto.
Overall, Rio Tinto had an average corporate income tax rate of 29.9% globally on underlying earnings over the past five years.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/mining/29062016/rio-tinto-pays-taxes-of-us4-5-billion-in-2015-2016-1034/