Image: Economic Contribution

Economic Contribution

Total economic contribution

The total economic contribution of Rio Tinto was $20.7 billion in 2005. This represents an outstanding 43 per cent increase from the previous year, which is principally explained by record volumes of production in most products and strong commodity prices. The total contribution comprises:

  • US$12.7 billion of value added
  • US$8 billion of payments to suppliers

Capital expenditure represents an additional flow of money injected into the economy, which is partly financed by money previously retained that is reinvested into the business. Capital investment in 2005 was $2.5 billion across the Group, 13 per cent higher than in 2004.

Total Rio Tinto Economic Contribution in 2005
Total Rio Tinto Economic Contribution in 2005 graph

Note: ‘Reinvested’ encompasses: Depreciation; Amortisation of discount on provisions; Earnings attributable to outside shareholders, and Retained earnings


Contributions to the economy by geographic region

Rio Tinto has business interests in X countries across the world, though the vast majority of economic activity is concentrated in Australia/NZ and North America (51 and 31 per cent, measured in gross turnover)

Total Rio Tinto Contribution to the Economy by Region in 2005
Contributions to the Economy by Geographic Region graph
Image: Economic Contribution