As part of our continuing commitment to transparency, this report brings together information on the payments we make to governments in each of the main countries in which we operate, as well as the taxes and net earnings of business units and other Group tax information. This is the third report of its kind and we will continue to publish this information annually.

At a time when the spotlight is increasingly being trained on the tax payments made by the world＇s leading businesses, this report demonstrates the significant contribution Rio Tinto makes to public finances in the countries where it operates around the globe. Tax transparency also assists in the fight against corruption and enhances the scope for communities and citizens to hold their governments to account.

The Rio Tinto Group paid US$11.6 billion of taxes during 2012, with almost US$9 billion of that in Australia. This represents an eight per cent decrease from 2011 (restated to exclude refunds of sales taxes, fuel taxes and other indirect taxes), which primarily reflects our lower profits in 2012. Our total underlying tax charge for the year, including final payments due after 2012, was US$7.5 billion, which represents 44% of our underlying profit before all taxes.

The disclosures contained in this report ensure that the Group remains transparent about its payments to governments and are consistent with Rio Tinto＇s support for the principles of the Extractive Industries Transparency Initiative (EITI). Rio Tinto was a founding member and continues to engage actively with EITI processes in the countries where it operates, including in the new multistakeholder groups in the USA and Australia.

As part of its commitment to showing leadership in tax transparency, Rio Tintopublishes this report on a voluntary basis because the Group believes that transparency makes good business sense. Rio Tinto is leading the way in this area as governments move to adopt a regulatory approach to declaring all tax payments.

In August 2012, the US Securities and Exchange Commission adopted regulations requiring resource extraction businesses to disclose certain payments to governments. Similar requirements are also proposed for companies listed in the European Union, and are increasingly being debated in other jurisdictions. The UK Prime Minister has also made this area a priority for the UK＇s Presidency of the G8 in 2013.

Rio Tinto encourages governments to work together to adopt a consistent global approach and establish disclosure requirements and thresholds that are proportionate. Otherwise, global companies will face additional costs and compliance obligations which are unnecessary. Mandatory reporting must remain focused on the ultimate objectives of disclosure requirements for both companies and governments: good tax governance, accountability, and transparency.

Rio Tinto also welcomes constructive debate on natural resource taxation policy as part of the overall contribution to economic development that responsible mining investments can make. We believe that it is essential for tax policy and design to take into account the cyclical nature of the industry and to respect agreements under which investment capital has already been committed. For an industry that makes multi-decade investments, with significant up-front capital expenditure, the risk of fiscal instability will influence the global flow of capital and a country＇s ability to attract and retain investment. Above all, tax law should never be retrospective.

The 2012 Taxes Paid report has been compiled using valuable feedback from previous reports. This year Rio Tinto identified the specific bodies at "Local government" level where tax payments have been made. Rio Tinto is committed to maintaining and improving its reporting and transparency procedures, and welcomes feedback on this report.