Rio Tinto hits back at 90 day claims
RIO Tinto has shut down claims it was one of the multinational mining companies pushing contractor payments to 90 days.
The company issued a response to an article in The Observer’s CQIndustry liftout published on Thursday.
Rio Tinto was quoted as one of the mining giants causing losses for regional businesses by not paying contractors for their services for up to three months.
A Mackay business owner claimed BHP and Rio Tinto were the two main culprits, however, Rio Tinto Australia managing director Joanne Farrell said the claims were incorrect.
“In fact, in May last year, Rio Tinto reduced payment terms for Australian suppliers under $1 million of expenditure to 30 days to support improved cashflow for small businesses,” she said.
“Rio Tinto spends hundreds of millions of dollars purchasing goods and services from small businesses across Australia every year.
“Our procurement spending is vital to many small businesses and we understand that lengthy payment terms can create cashflow pressure for small-to-medium sized firms.”
Gladstone Engineering Alliance’s Kieran Moran said there was about $4 million in unpaid work owed to Gladstone contractors.