Diversified major Rio Tinto has announced that it will transition its small Australian suppliers to shorter payment terms, which will see them being paid within 20 days of the miner receiving a valid invoice.
The shorter terms will be applied to suppliers with an annual turnover up to A$10-million, , with Rio saying the decision reflected the company’s recognition of the importance of ensuring smaller suppliers, whom are often local to its Australian operations, are paid in a timely manner.