Western Australia Premier Colin Barnett will personally demand that Rio Tinto abandon its contentious plans to force its contractors and suppliers to wait longer for payment.
Mr Barnett yesterday slammed Rio Tinto for its decision to double the time it takes to pay its suppliers from 45 days to 90 days, warning that the move could drive vulnerable companies out of business.
“Rio Tinto is a global company. It makes, even at low iron ore prices, very good profits in Western Australia, and … to shift that financial burden on to local contractors, including many small businesses, I don’t think is a good policy. I’m hoping Rio Tinto will reverse that,” Mr Barnett said.
Prime Minister Malcolm Turnbull also weighed in on the issue. In Perth yesterday, Mr Turnbull said he had spoken with some of WA’s small mining businesses during Monday’s tour of the Pilbara about the issue.
“I met yesterday in Karratha with many of those small businesses … and this was one of several issues that they raised with us, and I will raise that concern, as I undertook I would, with Rio Tinto,” he said.
For the rest of this article, click here: http://www.theaustralian.com.au/business/mining-energy/barnett-attacks-rios-pay-delay/news-story/8752c320a7bba678b36033951d57bb2e