Pay day for QAL, Yarwun suppliers as Rio back flips

RIO Tinto has done a backflip on its plan to double the payment period for its contractors and suppliers. 

Rio emailed suppliers and contractors last week with its plan to double payment periods from 45 days to 90.

>> Yarwun, QAL suppliers given lifeline as Rio doubles pay wait

But yesterday (Thursday), Rio took the change off the table after backlash from suppliers and contractors.

QAL Refinery in Gladstone. Photo Tom Huntley / The Observer
QAL Refinery in Gladstone. Photo Tom Huntley / The Observer Tom Huntley GLA080512REFI

The company has decided to resort back to contract terms that were in place on March 30.

"We value our partnerships with our suppliers and their feedback, so we have taken the decision to maintain our payment terms," a Rio Tinto spokesman said.

QAL cuts jobs as alumina prices hits 25-year low |

UPDATE: Workers axed as price plummets to 25-year low

Dedicated QAL worker shown door after more than 18 years

The decision is for existing contracts with the spokesman saying "future arrangements with our suppliers will be negotiated as part of any discussions about new contracts to maintain the competitiveness of our business and our future ability to develop our assets".

The reason for scrapped plan was for the company to ensure it had the cash to operate considering the "continuing volatile outlook for the sector".

"Rio Tinto has taken a number of proactive measurers over the last years to strengthen the company in light of challenging market conditions," the spokesman said.

"As part of these measures, we recently announced changes to the terms of some of our supplier segments to help maintain jobs in a difficult global environment for commodities."



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