Independent Auditor s Report

Transcription

1 Deloitte LLP La Tour Deloitte 1190 Avenue des Canadiens-de-Montréal Suite 500 Montréal QC H3B 0M7 Canada Tel.: Fax: Independent Auditor s Report To the Directors of Rio Tinto Canada Inc., Compagnie Minière IOC Inc., Rio Tinto Fer et Titane Inc., Rio Tinto Diamond and Mineral Canada Holding Inc. and Diavik Diamond Mines 2012 Inc. We have audited the payments associated with the country code CAN of Rio Tinto Canada Inc., Compagnie Minière IOC Inc., Rio Tinto Fer et Titane Inc., Rio Tinto Diamond and Mineral Canada Holding Inc. and Diavik Diamond Mines 2012 Inc. (the Companies ) included in the accompanying Schedule of Government Payments by Type totalling $ and the Schedule of Project Payments by Type totalling $ of Rio Tinto PLC for the year ended December 31, 2016 (the Payments ). The Payments have been prepared by management in accordance with The Reports on Payments to Governments Regulations 2014 of the European Communities Act (the financial reporting framework ). Management s Responsibility for the Payments Management of the Companies is responsible for the preparation of the Payments in accordance with the financial reporting framework, and for such internal control as management determines is necessary to enable the preparation of the Payments that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these Payments based on our audit. We conducted our audit in accordance with Canadian generally accepted auditing standards. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Payments are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the Payments. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the Payments, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Company s preparation of the Payments in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the Payments. Member of Deloitte Touche Tohmatsu Limited

2 We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the Payments for the year ended Decembre 31, 2016, are prepared, in all material respects, in accordance with the financial reporting framework. Basis of Accounting and Restriction on Use Without modifying our opinion, we draw attention to the fact that the Payments have been prepared in accordance with the financial reporting framework. The Payments are prepared to assist the Companies to meet the requirements of the Extractive Sector Transparency Measures Act of Canada. Consequently, the Payments may not be suitable for another purpose. Our report is intended solely for the Companies and Natural Resources Canada and should not be used by parties other than the Companies and Natural Resources Canada. June 28, CPA auditor, CA, public accountancy permit No. A113057

3 GOVERNMENT PAYMENTS BY TYPE Country Code Government Payment Type Unit Measure Volume Valuation Method Currency Amount Company Name Company Number Notes Report Name Report End Date Version Report Notes Filing Date USA ARIZONA STATE Fees USD 117,911 RIO TINTO PLC AUS AUSTRALIA FEDERAL Tax USD 1,309,800,735 RIO TINTO PLC USA CALIFORNIA GOVERNMENT Tax USD 4,500,000 RIO TINTO PLC USA CALIFORNIA GOVERNMENT Royalties USD 340,038 RIO TINTO PLC USA CALIFORNIA GOVERNMENT Fees USD 31,995 RIO TINTO PLC CAN CANADA FEDERAL Tax USD (66,411,837) RIO TINTO PLC CHL CHILE NATIONAL Fees USD 501,873 RIO TINTO PLC COL COLOMBIA NATIONAL Tax USD 193,375 RIO TINTO PLC MNG GOBI OYU DEVELOPMENT SUPPORT FUND Bonus USD 4,670,000 RIO TINTO PLC Bonus includes amounts paid under Oyu Tolgoi LLC's Communities Co-operation Agreement IDN INDONESIA NATIONAL Tax USD (3,209,519) RIO TINTO PLC CAN INNU NATION OF LABRADOR Fees USD 2,162,105 RIO TINTO PLC USA KERN COUNTY (CALIFORNIA) Fees USD 8,596,268 RIO TINTO PLC MNG KHANBOGD SUM Fees USD 7,899,915 RIO TINTO PLC MNG KHANBOGD SUM Bonus USD 1,740,000 RIO TINTO PLC Bonus comprises the transfer of previously purchased / constructed assets. The value of this in-kind payment is reported at cost CAN LUTSEL K'E DENE FIRST NATION Fees USD 153,270 RIO TINTO PLC MDG MADAGASCAR NATIONAL Royalties USD 1,092,081 RIO TINTO PLC MDG MADAGASCAR NATIONAL Fees USD 154,342 RIO TINTO PLC MNG MONGOLIA NATIONAL Tax USD 67,262,515 RIO TINTO PLC Tax paid to the national government of Mongolia is withholding tax on loan interest. MNG MONGOLIA NATIONAL Royalties USD 39,375,763 RIO TINTO PLC MNG MONGOLIA NATIONAL Fees USD 498,431 RIO TINTO PLC NAM NAMIBIA NATIONAL Tax USD 3,328,140 RIO TINTO PLC NAM NAMIBIA NATIONAL Royalties USD 4,622,440 RIO TINTO PLC NAM NAMIBIA NATIONAL Fees USD 476,671 RIO TINTO PLC AUS NEW SOUTH WALES GOVERNMENT Royalties USD 133,106,273 RIO TINTO PLC AUS NEW SOUTH WALES GOVERNMENT Fees USD 2,707,731 RIO TINTO PLC AUS NORTHERN TERRITORY GOVERNMENT Royalties USD 34,062,803 RIO TINTO PLC AUS NORTHERN TERRITORY GOVERNMENT Fees USD 4,843,299 RIO TINTO PLC CAN NORTHWEST TERRITORIES GOVERNMENT Tax USD 19,202,967 RIO TINTO PLC CAN NORTHWEST TERRITORIES GOVERNMENT Fees USD 4,071,540 RIO TINTO PLC PER PERU NATIONAL Tax USD 163,136 RIO TINTO PLC PER PERU NATIONAL Fees USD 8,107,717 RIO TINTO PLC CAN QUEBEC GOVERNMENT Tax USD (2,327,001) RIO TINTO PLC AUS QUEENSLAND GOVERNMENT Royalties USD 141,650,215 RIO TINTO PLC AUS QUEENSLAND GOVERNMENT Fees USD 4,236,173 RIO TINTO PLC USA SALT LAKE COUNTY (UTAH) Fees USD 43,365,463 RIO TINTO PLC ZAF SOUTH AFRICA NATIONAL Tax USD 81,135,704 RIO TINTO PLC ZAF SOUTH AFRICA NATIONAL Royalties USD 17,878,238 RIO TINTO PLC CAN TLICHO GOVERNMENT Fees USD 967,344 RIO TINTO PLC MNG ULAANBATAAR CITY Fees USD 786,602 RIO TINTO PLC MNG UMNUGOBI DEVELOPMENT CENTRE Bonus USD 210,000 RIO TINTO PLC USA USA FEDERAL Tax USD (14,091,691) RIO TINTO PLC USA USA FEDERAL Fees USD 479,210 RIO TINTO PLC USA UTAH GOVERNMENT Royalties USD 6,005,283 RIO TINTO PLC USA UTAH GOVERNMENT Fees USD 141,711 RIO TINTO PLC AUS WESTERN AUSTRALIA GOVERNMENT Royalties USD 986,069,425 RIO TINTO PLC AUS WESTERN AUSTRALIA GOVERNMENT Fees USD 1,526,016 RIO TINTO PLC CAN YELLOWKNIVES DENE FIRST NATION Fees USD 418,331 RIO TINTO PLC

4 GOVERNMENT PAYMENT TOTALS Government Country Code Amount Currency Company Name Company Number Report End Date Version Notes Report Name Report Notes Filing Date ARIZONA STATE USA 117,911 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 AUSTRALIA FEDERAL AUS 1,309,800,735 USD RIO TINTO PLC CALIFORNIA GOVERNMENT USA 4,872,033 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 CANADA FEDERAL CAN (66,411,837) USD RIO TINTO PLC CHILE NATIONAL CHL 501,873 USD RIO TINTO PLC COLOMBIA NATIONAL COL 193,375 USD RIO TINTO PLC GOBI OYU DEVELOPMENT SUPPORT FUND MNG 4,670,000 USD RIO TINTO PLC INDONESIA NATIONAL IDN (3,209,519) USD RIO TINTO PLC INNU NATION OF LABRADOR CAN 2,162,105 USD RIO TINTO PLC KERN COUNTY (CALIFORNIA) USA 8,596,268 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 KHANBOGD SUM MNG 9,639,915 USD RIO TINTO PLC LUTSEL K'E DENE FIRST NATION CAN 153,270 USD RIO TINTO PLC MADAGASCAR NATIONAL MDG 1,246,423 USD RIO TINTO PLC MONGOLIA NATIONAL MNG 107,136,709 USD RIO TINTO PLC NAMIBIA NATIONAL NAM 8,427,251 USD RIO TINTO PLC NEW SOUTH WALES GOVERNMENT AUS 135,814,004 USD RIO TINTO PLC NORTHERN TERRITORY GOVERNMENT AUS 38,906,102 USD RIO TINTO PLC NORTHWEST TERRITORIES GOVERNMENT CAN 23,274,507 USD RIO TINTO PLC PERU NATIONAL PER 8,270,853 USD RIO TINTO PLC QUEBEC GOVERNMENT CAN (2,327,001) USD RIO TINTO PLC QUEENSLAND GOVERNMENT AUS 145,886,388 USD RIO TINTO PLC SALT LAKE COUNTY (UTAH) USA 43,365,463 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 SOUTH AFRICA NATIONAL ZAF 99,013,942 USD RIO TINTO PLC TLICHO GOVERNMENT CAN 967,344 USD RIO TINTO PLC ULAANBATAAR CITY MNG 786,602 USD RIO TINTO PLC UMNUGOBI DEVELOPMENT CENTRE MNG 210,000 USD RIO TINTO PLC USA FEDERAL USA (13,612,481) USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 UTAH GOVERNMENT USA 6,146,994 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 WESTERN AUSTRALIA GOVERNMENT AUS 987,595,441 USD RIO TINTO PLC YELLOWKNIVES DENE FIRST NATION CAN 418,331 USD RIO TINTO PLC

5 PROJECT PAYMENTS BY TYPE Project Code Project Name Country Code List Payment Type Unit Measure Volume Valuation Method Currency Amount Company Name Company Number Notes Report Name Report End Date Version Report Notes Filing Date AUS01 PILBARA AUS Tax USD 2,220,020,446 RIO TINTO PLC AUS01 PILBARA AUS Royalties USD 972,688,965 RIO TINTO PLC AUS01 PILBARA AUS Fees USD 529,395 RIO TINTO PLC CAN01 IRON ORE COMPANY OF CANADA CAN Tax USD (56,713,443) RIO TINTO PLC CAN01 IRON ORE COMPANY OF CANADA CAN Fees USD 2,162,105 RIO TINTO PLC MNG01 OYU TOLGOI MNG Tax USD 67,262,515 RIO TINTO PLC MNG01 OYU TOLGOI MNG Royalties USD 39,375,763 RIO TINTO PLC MNG01 OYU TOLGOI MNG Fees USD 8,908,320 RIO TINTO PLC MNG01 OYU TOLGOI MNG Bonus USD 6,620,000 RIO TINTO PLC USA01 KENNECOTT UTAH COPPER USA Tax USD (11,382,374) RIO TINTO PLC USA01 KENNECOTT UTAH COPPER USA Royalties USD 6,005,283 RIO TINTO PLC USA01 KENNECOTT UTAH COPPER USA Fees USD 43,601,897 RIO TINTO PLC USA02 RESOLUTION COPPER USA Tax USD (9,022,611) RIO TINTO PLC USA02 RESOLUTION COPPER USA Fees USD 502,398 RIO TINTO PLC IDN01 GRASBERG IDN Tax USD (3,209,519) RIO TINTO PLC PER01 LA GRANJA PER Fees USD 7,951,092 RIO TINTO PLC AUS02 NEW SOUTH WALES COAL AUS Tax USD 347,723,854 RIO TINTO PLC AUS02 NEW SOUTH WALES COAL AUS Royalties USD 133,106,273 RIO TINTO PLC AUS02 NEW SOUTH WALES COAL AUS Fees USD 2,742,093 RIO TINTO PLC AUS03 QUEENSLAND COAL AUS Tax USD 60,065,899 RIO TINTO PLC AUS03 QUEENSLAND COAL AUS Royalties USD 51,437,751 RIO TINTO PLC AUS03 QUEENSLAND COAL AUS Fees USD 3,105,559 RIO TINTO PLC AUS04 ARGYLE AUS Tax USD (27,698,951) RIO TINTO PLC This does not represent an actual refund from the Australian Tax Office AUS04 ARGYLE AUS Royalties USD 11,269,585 RIO TINTO PLC AUS04 ARGYLE AUS Fees USD 779,265 RIO TINTO PLC CAN02 DIAVIK CAN Tax USD 9,504,573 RIO TINTO PLC CAN02 DIAVIK CAN Fees USD 5,610,485 RIO TINTO PLC NAM01 ROSSING NAM Tax USD 3,328,140 RIO TINTO PLC NAM01 ROSSING NAM Royalties USD 4,622,440 RIO TINTO PLC NAM01 ROSSING NAM Fees USD 476,671 RIO TINTO PLC CAN03 RIO TINTO FER ET TITANE CAN Tax USD (2,327,001) RIO TINTO PLC MDG01 QIT MADAGASCAR MINERALS MDG Royalties USD 1,092,081 RIO TINTO PLC MDG01 QIT MADAGASCAR MINERALS MDG Fees USD 154,342 RIO TINTO PLC ZAF01 RICHARDS BAY MINERALS ZAF Tax USD 81,135,704 RIO TINTO PLC ZAF01 RICHARDS BAY MINERALS ZAF Royalties USD 17,878,238 RIO TINTO PLC USA03 US BORAX USA Tax USD 11,473,065 RIO TINTO PLC USA03 US BORAX USA Royalties USD 340,038 RIO TINTO PLC USA03 US BORAX USA Fees USD 8,628,263 RIO TINTO PLC AUS05 DAMPIER SALT AUS Tax USD 14,021,251 RIO TINTO PLC AUS05 DAMPIER SALT AUS Royalties USD 2,110,875 RIO TINTO PLC AUS05 DAMPIER SALT AUS Fees USD 182,994 RIO TINTO PLC AUS06 GOVE AUS Royalties USD 34,062,803 RIO TINTO PLC AUS06 GOVE AUS Fees USD 4,843,299 RIO TINTO PLC AUS07 WEIPA INCLUDING AMRUN AUS Tax USD (9,342,450) RIO TINTO PLC This does not represent an actual refund from the Australian Tax Office AUS07 WEIPA INCLUDING AMRUN AUS Royalties USD 90,212,464 RIO TINTO PLC AUS07 WEIPA INCLUDING AMRUN AUS Fees USD 1,130,614 RIO TINTO PLC AUSEXP01 EXPLORATION - AUSTRALIA AUS Tax USD (13,601,213) RIO TINTO PLC This does not represent an actual refund from the Australian Tax Office AUSOTH01 HEAD OFFICE / NON-EXTRACTIVE AUSTRALIA AUS Tax USD (1,281,388,101) RIO TINTO PLC This does not represent an actual refund from the Australian Tax Office CHLEXP01 EXPLORATION - CHILE CHL Fees USD 501,873 RIO TINTO PLC COLEXP01 EXPLORATION - COLOMBIA COL Tax USD 193,375 RIO TINTO PLC MNGEXP01 EXPLORATION - MONGOLIA MNG Fees USD 276,628 RIO TINTO PLC PEREXP01 EXPLORATION - PERU PER Tax USD 163,136 RIO TINTO PLC PEREXP01 EXPLORATION - PERU PER Fees USD 156,625 RIO TINTO PLC USAEXP01 EXPLORATION - USA - KENNECOTT USA Tax USD 1,489,992 RIO TINTO PLC USAEXP02 EXPLORATION - USA - OTHER USA Tax USD (2,149,763) RIO TINTO PLC

6 PROJECT PAYMENT TOTALS Project Name Project Code Amount Currency Company Name Company Number Report End Date Version Notes Report Name Report Notes Filing Date PILBARA AUS01 3,193,238,806 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 IRON ORE COMPANY OF CANADA CAN01 (54,551,338) USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 OYU TOLGOI MNG01 122,166,598 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 KENNECOTT UTAH COPPER USA01 38,224,806 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 RESOLUTION COPPER USA02 (8,520,213) USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 GRASBERG IDN01 (3,209,519) USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 LA GRANJA PER01 7,951,092 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 NEW SOUTH WALES COAL AUS02 483,572,220 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 QUEENSLAND COAL AUS03 114,609,209 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 ARGYLE AUS04 (15,650,101) USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 DIAVIK CAN02 15,115,058 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 ROSSING NAM01 8,427,251 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 RIO TINTO FER ET TITANE CAN03 (2,327,001) USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 QIT MADAGASCAR MINERALS MDG01 1,246,423 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 RICHARDS BAY MINERALS ZAF01 99,013,942 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 US BORAX USA03 20,441,366 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 DAMPIER SALT AUS05 16,315,120 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 GOVE AUS06 38,906,102 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 WEIPA INCLUDING AMRUN AUS07 82,000,628 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 EXPLORATION - AUSTRALIA AUSEXP01 (13,601,213) USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 HEAD OFFICE / NON-EXTRACTIVE AUSTRALIA AUSOTH01 (1,281,388,101) USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 EXPLORATION - CHILE CHLEXP01 501,873 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 EXPLORATION - COLOMBIA COLEXP01 193,375 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 EXPLORATION - MONGOLIA MNGEXP01 276,628 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 EXPLORATION - PERU PEREXP01 319,761 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 EXPLORATION - USA - KENNECOTT USAEXP01 1,489,992 USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17 EXPLORATION - USA - OTHER USAEXP02 (2,149,763) USD RIO TINTO PLC Extractive Industry Reporting 28-Jun-17