Rio Tinto has disclosed details of the US$7.6B taxes and royalties it paid globally in 2019, including US$4.8B of corporate tax.
The mining giant’s latest Taxes Paid Report showed that the majority of its taxes were paid in Australia (US$6.2B), home to the largest part of Rio Tinto’s business.
The company also made significant payments in Chile (US$311M), Mongolia (US$305M), Canada (US$291M), the United States (US$178M), the United Kingdom (US$117M) and South Africa (US$80M).
The report also outlined that Rio Tinto made a US$45.1B direct economic contribution in 2019 to the countries and communities where it operates, taking the company’s direct economic contribution since 2015 to $210B.
Jakob Stausholm, chief financial officer of Rio Tinto, said “Our business, including the taxes and royalties we pay, play a critical role in the overall economic health and development of the regions where we operate.
“The funds we provide to governments and communities support the basic infrastructure of society – bridges and roads, schools and hospitals – as well as other local development priorities, like job creation and skills training. Being transparent about where these payments go helps our stakeholders better understand how these funds may be used.”
A decade ago, Rio Tinto became the first company in the resources industry to voluntarily disclose its payments to governments in detail, and has continued to report on taxes and royalties paid, and economic contribution, in increasing detail ever since.
Over that period, it has paid over US$70B in taxes and royalties to governments around the world, including US$52B paid in Australia.
“This year, consistent with Rio Tinto’s commitment to building on transparency about its economic contribution, the company has for the first time released comprehensive financial and tax related disclosures for each country in which it operates,” the company added.