Anglo reports global tax and economic contributions of $25bn
By Dineo Faku 33m ago
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ANGLO American’s tax and economic contributions in 2020 amounted to more than $25 billion (R363bn) across all its major jurisdictions, the group said in its seventh annual Tax and Economic Contribution Report, published yesterday.
Chief executive Mark Cutifani said the positive contribution Anglo made to the countries in which it operated extended far beyond the taxes and royalties it paid.
“The high quality of employment that we provide and the associated wages, the money we spend with local suppliers, our corporate social investment, and our capital investments all support the fabric of many economies.
“In 2020, our contribution amounted to more than $25bn, demonstrating the extent to which we continued contributing to the communities and countries where we work – both economically and socially – staying true to our purpose as a business,” said Cutifani.
The report, which detailed the breakdown of the company’s contributions to its major jurisdictions, said that Anglo had borne and collected $5.3bn in taxes, paid $3.6bn in taxes, spent $12.6bn in procurement, and made $4.1bn in capital investments and $0.1bn in corporate social investments.
Cutifani said Anglo’s operations had spent about $11.5bn with suppliers, of which $10bn was with local suppliers.
“Our expenditure with designated suppliers (black economic empowerment in South Africa, indigenous communities in Canada and Aboriginal suppliers in Australia) was $2.6bn, representing 23 percent of total supplier expenditure, including $0.5bn with host communities in the direct vicinity of our operations in South Africa,” said Cutifani.
He said in addition, as a result of the group’s ambition to increase procurement spend with suppliers in the host communities close to its operations, other regions recorded a further $0.2bn of procurement spend with communities in the direct vicinity of its operations.
In South Africa, where Anglo operates platinum group metals, diamond and iron ore mines, the company said it employed 45 939 people, had paid $1.62bn in wages and benefits, had borne $1.648bn in taxes, and spent $3.11bn in procurement.
Anglo recorded a 9 percent decrease in operating profit to $5.6bn in 2020, with profit attributable to equity shareholders down 41 percent to $2.1bn.
The group’s head of tax, Zahira Quattrocchi, said paying taxes was a central responsibility for sustainable businesses.
“Transparency around those taxes is also critical and, for Anglo American, is a dialogue we aim to continue to lead.
“We see our Tax and Economic Contribution Report not only as an opportunity to provide the detail of what we contribute, but also as an opportunity to explain the principles and values that underpin our broader approach, how we govern that approach, and how we engage with our stakeholders,” Quattrocchi said.
BUSINESS REPORT ONLINE