Rio Tinto publishes Payment Times Reporting Scheme data

Rio Tinto has published its first payment times performance data as part of the Australian Government’s Payment Times Reporting Scheme (PTRS) and put in place faster payment times for Australian small and regional suppliers.

During the first PTRS reporting period, from January to June 2021, Rio Tinto spent A$613 million with around 6,300 Australian suppliers on the government’s small business register.

In this period, Rio Tinto paid 76 per cent of invoices to small businesses within 20 days, in line with its terms at the time, and 93 per cent within 30 days. Performance has improved significantly in the current reporting period, with 96 per cent of invoices paid within 20 days and 98 per cent within 30 days to date since 1 July 2021.

Rio Tinto is committed to further improving its payment times performance. Effective immediately, Australian small suppliers are on faster 14-day payment terms and all regional businesses, regardless of size, based close to the company’s Australian operations are on 20-day payment terms.

Following feedback from Australian suppliers, Rio Tinto will also create a new local support team to provide additional assistance to the company’s Australian small and regional business suppliers.

The new team will focus on increasing local buying programs, ensuring quicker payment turn-around times, and will be targeting seven-day payment terms for Indigenous suppliers. In 2020, Rio Tinto spent about A$300 million with around 80 Indigenous suppliers.

Rio Tinto Chief Executive, Australia, Kellie Parker said “Suppliers play a crucial role in our business and are integral to the local economies and communities in which we operate. Fast and timely payment is an important part of our supply chain, and we will continue to support openness and transparency surrounding payment terms.

“To reinforce our commitment to our suppliers, we have introduced new faster payment terms for Australian small and regional businesses. After not meeting our own expectations and those of our suppliers in the first PTRS reporting period, we have made changes to improve our performance in the second reporting period, which we must now build upon.”

The Payment Times Reporting Scheme, which commenced on 1 January 2021, seeks to increase transparency on payment terms and requires large businesses and government to publicly report their small business payment terms and times.

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Rio Tinto plc
6 St James’s Square
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United Kingdom
T +44 20 7781 2000
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Rio Tinto Limited
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Australia
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