Glencore paid $5.8bn to governments in 2020
Swiss-based multinational miner Glencore has disclosed $5.7 billion in taxes, royalties and other government payments in 2020.
The diversified mining house says the covid-19 pandemic
caused major production outages across the portfolio last year amid softer
commodity prices: the result, lower payments to host nations compared with the
2019 total of $7.7 billion.
The group’s effective income tax rate, pre-significant
items, was 29.7% in 2020, consistent with the 30.5% reported in 2019.
Glencore says its contributions go beyond the taxes and
royalties it pays, with its activities contributing significant, long-term
socio-economic value to our operating countries. It enables governments to
realise value from their natural assets and fund public services and
infrastructure to improve their nation’s way of life.
“Our global footprint can make significant and sustainable
economic benefits to our host governments, employees, suppliers and communities
through the provision of employment and training, tax and royalty payments,
local procurement, social development and environmental stewardship,” says CFO
Steve Kalmin in a media release.
The 145,000 people working for the company on more than 150
mining, metallurgical and production sites received $4.6 billion in wages and
benefits in 2020. It also spent $95 million on initiatives benefiting
communities living around its operations, including $15 million on
covid-related activities.
Glencore makes the annual disclosures as a signatory of the
Extractives Industry Transparency Initiative, which aims to increase
transparency regarding multinational miners’ interactions with host governments
and local suppliers.
Glencore has committed to publishing an annual modern
slavery statement and is also committed to considering social, ethical and
environmental considerations when managing relationships with suppliers. The
measures help address human rights risks in Glencore’s supply chains.
Glencore is also a signatory to the United Nations’ Global
Compact, a set of principles covering human rights, labor, environment and
anti-corruption, and operates by the Core Conventions of the International
Labor Organisation.
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