Rio Tinto Paid $7.1 Billion in Taxes in 2014
The taxman came early and often last year for Rio Tinto.
The mining behemoth paid an astonishing $7.1 billion in taxes during 2014, and a further $1.8 billion on behalf of its employees, despite lower-than-expected commodity prices.
For the past five years the mining company has provided details of the taxes paid in the jurisdictions in which it operates globally. According to its 2014 voluntary report, the miner paid most of the taxes and royalties in Australia ($5.6 billion), Canada ($432 million), Chile ($262 million), US ($211 million), Mongolia ($185 million), South Africa ($110 million), France ($106 million), Guinea ($67 million), Singapore ($44 million), and UK ($29 million).
“The taxes paid report is important evidence of our commitment to taxation transparency. We were a founding member of the Extractive Industries Transparency Initiative and strongly advocate the need to appropriately disclose payments to governments around the world,” said Chris Lynch, chief financial officer.
Under the report, Rio Tinto’s global tax rate during the year was 43 percent. The company has paid on average 42.5 percent since 2010.
“Our group effective corporate income tax rate is reflective of the statutory corporate income tax rates in the countries in which we operate and we pay the vast majority of our group taxes in the countries in which we have mining and processing operations,” said Lynch.
"Through our tax and royalty contribution, investments, employment, local purchasing and contracting, we are a major generator of wealth and economic activity. We are very proud of this record.”
One of the primary focuses in 2014 was to eliminate Base Erosion and Profit Shifting (BEPS). In the press release, Rio Tinto agreed with these efforts but believes governments must be mindful not to damage the investment environment when implementing BEPS proposals.
“To tackle BEPS issues effectively, we must adopt a coherent global approach and improve cross-border cooperation rather than take unilateral action that adds to compliance costs and dampens trade and investment,” said Lynch.
Click here to see the full report.
Vale invests $150mn to extend life of Manitoba operations
Vale has announced a $150mn CAD investment to extend current mining activities in Thompson, Manitoba by 10 years while aggressive exploration drilling of known orebodies holds the promise of mining well past 2040.
Global energy transition is boosting the market for nickel
The Thompson Mine Expansion is a two-phase project. The announcement represents Phase 1 and includes critical infrastructure such as new ventilation raises and fans, increased backfill capacity and additional power distribution. The changes are forecast to improve current production by 30%.
“This is the largest single investment we have made in our Thompson operations in the past two decades,” said Mark Travers, Executive Vice-President for Base Metals with Vale. “It is significant news for our employees, for the Thompson community and for the Province of Manitoba.
“The global movement to electric vehicles, renewable energies and carbon reduction has shone a welcome spotlight on nickel – positioning the metal we mine as a key contributor to a greener future and boosting world demand. We are proud that Thompson can be part of that future and part of the low carbon solution.”
Vale continues drilling program at Manitoba
Coupled with today’s announcement, Vale is continuing an extensive drilling program to further define known orebodies and search for new mineralization.
“This $150mn investment is just one part of our ambitious Thompson turnaround story. It is an indicator of our confidence in a long future for the Thompson operations,” added Dino Otranto, Chief Operating Officer for Vale’s North Atlantic Base Metals operations.
“Active collaboration between our design team, technical services, USW Local 6166, and our entire Thompson workforce has delivered a safe, efficient and fit-for-purpose plan that will enable us to extract the Thompson nickel resources for many years to come.”
The Thompson orebody was first discovered in 1956 by Vale (then known as Inco) following the adoption of new exploration technology and the largest exploration program to-date in the company’s history. Mining of the Thompson orebody began in 1961.
“We see the lighting of a path forward to a sustainable and prosperous future for Vale Base Metals in Manitoba,” said Gary Annett, General Manager of Vale’s Manitoba Operations.