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Taxes Paid Report

The taxes we pay help governments provide essential services to communities and invest for the future. In 2019, the Rio Tinto Group paid $7.6 billion in taxes and royalties globally, including $6.2 billion paid in Australia.

Since our first Taxes Paid Report in 2010, we have paid $70.6 billion in taxes and royalties globally, of which over $52.1 billion, was paid in Australia.


Working With Shared Purpose

Our values, experience and history tell us that we must work in a way that delivers real, lasting benefits for the owners of our company as well as the wider communities in which we operate. We must care for our employees, respect and care for the environment when we explore, build and operate, and repurpose or rehabilitate the land when our operations come to an end. We must contribute our fair share to local and national economies, including through the payment of taxes and royalties, and do so transparently.

Jakob Stausholm

Jakob Stausholm

Chief Financial Officer, April 2020

At Rio Tinto, our purpose is to produce materials essential to human progress. It is important to us to fulfil that purpose responsibly – and transparently.

More

A decade ago, we were the first company in our industry to disclose our payments to governments in detail, and we have been reporting on our taxes and royalties paid, and our economic contribution, in increasing detail ever since.

Today, we are open not only about our tax payments but also our mineral development contracts, beneficial ownership and a range of other commitments. We believe such transparency both encourages accountability – ours as well as others’ – and allows us to have fact-based conversations about the issues at hand.

In 2019, the Rio Tinto Group paid $7.6 billion in taxes and royalties globally, of which the vast majority – $6.2 billion – was paid in Australia, home to the largest part of our business. Over the past 10 years we have paid over $70 billion in taxes and royalties globally; more than 70%, or $52 billion, was paid in Australia.

Why is this important? Because our business, including the taxes and royalties we pay, plays a critical role in the overall economic health and development of the regions where we operate – Western Australia to Québec.

Our business and 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. This is one, very important way we pioneer progress.

Being transparent about where these payments go helps our stakeholders better understand how these funds may be used.

This year, consistent with our commitment to building on transparency about our economic contribution, we for the first time release comprehensive financial and tax related disclosures for each country in which we operate. Our 2018 Country by Country report can be found in the Reports section of our website.

A consistent standard against which companies can report their contributions is also essential to promoting confidence in business. This year, we continue our reporting in line with the B Team Responsible Tax Principles and we commit to implementing in full, the “Tax & Payments to Governments” standard of the Global Sustainability Standards Board of the Global Reporting Initiative.

I believe this year’s reports, together with the additional disclosures we have made beyond our Annual Report – including, for example, on climate change and sustainability – present a compelling view of the lasting, positive impact our company has, both on our host communities and the world at large.

We welcome your feedback.

$7.6B

Taxes & Royalties Paid

$4.8B

Corporate Tax Paid

37K

Suppliers in 120 Global Locations

$45.1B

Direct Economic Contribution

$36M

Community Investment

$210B

Economic Contribution Since 2015

2019 figures. In 2019, we adopted new definitions and data collection processes for reporting discretionary community investments, non-discretionary development contributions, management costs and payments to landowners to align with GRI Reporting Standards. As a result, 2019 data is not comparable with previous years.

2019 Direct Economic Contribution Globally

38%

Payments to Suppliers

11%

Reinvested

16%

Payables to Governments

24%

Dividends & Finance Items

10%

Salaries

1%

Non-Government Royalties & Other

2019 figures. Payables to governments includes charges for corporate income tax, government royalties, employer payroll taxes and other tax charges.

Our Global Tax Contribution

  • Australia

    Of the $7.6 billion Rio Tinto paid in taxes and royalties during 2019, $6.2 billion was paid in Australia. Australia is home to around half of our global assets, including Gudai-Darri (Koodaideri) – our new $2.6 billion iron ore mine – and Winu, our promising copper-gold exploration project. At our iron ore assets in the Pilbara, projects worth a combined value of $4.6 billion are underway. And we continue to invest in the country including with our partners. In 2019, we awarded our 400th scope of work through our local procurement portal, and partnered with over 1900 Western Australian businesses – including Pilbara Aboriginal businesses.

    $6.2B

    Total Taxes & Royalties Paid in Australia

    $1.7B

    Royalties Paid in Australia

    $4.2B

    Corporate Income Tax Paid in Australia

    $619M

    Taxes Collected on Behalf of Employees & Remitted to Australian Governments

    2019 figures

    Australian underlying earnings 2019

    $13.5B

    Australian effective corporate income tax rate on underlying earnings 2019

    31.1%

    Australian effective tax rate on underlying earnings 2019, including royalties

    39.3%

    Total taxes and royalties paid in Australia from 2010 to 2019

    $52.1B

    Number of employees

    19,173

  • Canada

    We have invested over $9 billion in Canada in the last eight years. At the $0.5 billion Kemano project in Kitimat, British Columbia, we are constructing a second tunnel to de-risk our 100% owned hydropower facility. In 2018, we committed $187 million to extend operations at the Vaudreuil alumina refinery.

    $291M

    Total Taxes & Royalties Paid in Canada

    $45M

    Corporate Income Tax Paid in Canada

    $430M

    Taxes Collected on Behalf of Employees & Remitted to Canadian Governments

    2019 figures

    Canadian underlying earnings 2019

    $1.1B

    Number of employees

    11,576

  • Mongolia

    The Oyu Tolgoi copper mine is a major contributor to the Mongolian economy. In 2019, this operation generated $300 million in taxes, royalties and other payments for Mongolian governments. Overall, Oyu Tolgoi has paid more than $2.6 billion in taxes and royalties since 2010.

    $305M

    Total Taxes & Royalties Paid

    $152M

    Including Total Taxes Paid to the Mongolian National Government

    $153M

    Including Total Taxes Paid to Four Regional Governments

    $22M

    Taxes Collected on Behalf of Employees & Remitted to Mongolian Governments

    $10.3B

    Invested in Mongolia Between 2010 & 2019

    2019 figures. Total taxes paid to the Mongolian national government includes royalties of $71M.

    Mongolian underlying loss 2019

    $(403)M

    Number of employees

    3,215

  • US

    We have been creating value in the US for more than a century, and continue to invest in our future there.

    In 2019, we announced a $1.5 billion investment at our Kennecott copper operation in Utah, extending operations to 2032. We committed $302 million of additional capital to advance our Resolution Copper project in Arizona. We also announced a $10 million investment to pilot the production of commercial grade lithium at our Boron operations in California.

    $178M

    Total Taxes & Royalties Paid in the US

    $(19)M

    Corporate Income Tax Refund in the US

    $47M

    Taxes Paid to Salt Lake County, Utah

    $92M

    Taxes Collected on Behalf of Employees & Remitted to US State and Federal Agencies

    2019 figures

     

    US underlying earnings 2019

    $120M

    Number of employees

    3,400

  • Europe

    Our global headquarters are in London, and we pay tax in ten European countries: Belgium, France,  Germany, Iceland, Luxembourg, Netherlands, Serbia, Spain, Switzerland, and UK.

    $160M

    Total Taxes & Royalties Paid in Europe

    $98M

    Corporate Income Tax Paid in Europe

    $40M

    Employer Payroll Tax Paid in Europe

    $55M

    Taxes Collected on Behalf of Employees & Remitted to European Governments

    2019 figures

    Europe underlying loss 2019

    $(149)M

    Number of employees

    1,149

  • Africa

    Our operations in Africa include mines, refineries and processing plants and, in 2019, we paid tax in South Africa, Guinea, Namibia, Madagascar and Zambia.

    $120M

    Total Taxes & Royalties Paid in Africa

    $80M

    Total Taxes & Royalties Paid in South Africa 

    $99M

    Corporate Income Tax Paid in Africa 

    2019 figures

    Africa underlying earnings 2019 (including equity accounted units)

    $249M

    Number of employees

    4,371

  • Latin America

    In Chile, Brazil and Peru, we own interests in copper and bauxite mines, as well as an alumina refinery. Escondida, in northern Chile, is the world’s largest copper mine, producing around 1.2 million tonnes a year. We own a 30% share.

    $340M

    Total Taxes & Royalties Paid in Latin America 

    $311M

    Total taxes & Royalties Paid in Chile 

    $15M

    Total Taxes & Royalties Paid in Brazil

    $13M

    Total Taxes & Royalties Paid in Peru 

    $13M

    Taxes Collected on Behalf of Employees & Remitted to Latin American Governments

    2019 figures

    Latin America underlying earnings 2019

    (including equity accounted units)

    $453M

    Number of employees

    1,513