(Ecofin Agency) - Rio Tinto is active in Guinea, South Africa, and Madagascar. In the first, it develops the Simandou iron deposit. In the other two, it extracts mineral sands. In 2023, the company paid $117 million in taxes to African countries.

In 2024, Rio Tinto, the world's second-largest mining company by market capitalization, paid over $150 million in taxes and royalties to six African countries. That is 28% more than in 2023. In a report published on March 26, the company indicated that most of the payments it made last year were made to South Africa.

Rio Tinto's subsidiary Richards Bay Minerals is South Africa's leading mineral sands producer. In 2024, it paid $79.3 million in taxes and royalties, up 16% from $68.1 million in 2023.

Rio Tinto paid $58.3 million in Guinea in 2024, up from $42 million in 2023. These payments mainly included corporate income tax from the company’s minority stake in the Sangaredi bauxite mine and taxes related to the Simandou iron ore project. With the Simandou mine expected to start production by late 2025, Rio Tinto’s payments in Guinea are set to rise significantly.

In Madagascar, Rio Tinto paid $11.1 million in taxes in 2024, compared to $7.1 million in 2023. The company operates through its subsidiary QIT Madagascar Minerals (QMM), which produces ilmenite in the Anosy region. Madagascar was the last African country where Rio Tinto paid corporate income tax in 2024.

In Angola, Rwanda, and Mozambique, Rio Tinto’s combined tax payments totaled less than $2 million. The company has exploration agreements for lithium in Rwanda and diamonds in Angola, but has not reported significant progress. In Mozambique, Rio Tinto previously acquired coal mines but has not carried out recent activities.

Beyond taxes, Rio Tinto invests in local development initiatives. In Guinea, it supports infrastructure projects as part of the Simandou development. In Madagascar, QMM allocates $4 million annually to social programs, including education and healthcare projects.

This article was initially published in French by Emiliano Tossou

Edited in English by Ange Jason Quenum