Rio’s $53m community claim

AS the battle over the resources industry’s contribution to Canberra’s coffers continues into its fifth week, Rio Tinto has revealed it spent $53.5 million on the Western Australia community in calendar 2009.

The mining giant claims to have spent $27.8 million on what it calls community investment activities and $25.5 million in native title payments.

The community investment activities include more than $5 million from the Rio Tinto Future Fund, which it established in 2001 in the aftermath of the deal to buy Robe River Iron Ore from North. It added that partner contributions in various projects added a further $14 million.

In contrast to his description of dysfunction in Canberra, Rio Tinto Australian chief executive Sam Walsh wrote to recipients of a new Community Investment Review newsletter that the company’s partnership approach delivered projects that were “robust and effective”.

Mr Walsh is also chair of the Rio Tinto Future Fund, which the company said had contributed $32 million since it was founded.

Rio Tinto said it established sponsorship arrangements with the State Library, David Wirrpanda Foundation, Earthwatch International, The Smith Family, the WA Art Gallery and Musica Viva.

The company says it employs more than 9,500 people in WA, of which more than one third raised more than $300,000 for charity through its Employees in the Community program. Rio Tinto says its focus is on four key community areas – health, education, environment and culture.

“By channelling our efforts into these key areas, we believe we are able to make the biggest impact on some of the most important issues facing our community,” Mr Walsh said.

In addition, Rio Tinto said it provides 143 residential and 69 commercial properties worth $13.5 million to community organisations at subsidised rates.

Rio Tinto has again pointed to $110 million in business with Aboriginal contractors in the Pilbara last year, and a $200 million, four-year mining deal struck with a joint venture between NRW and indigenous community group Eastern Guruma.