REG - BHP Group Limited - BHP 2023 Economic Contribution Report Extract
22/08/2023 07:00
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RNS Number : 9948J BHP Group Limited 21 August 2023
Issued by: BHP Group Limited
Date: 22 August 2023
To: London Stock Exchange
JSE Limited
For Release: Immediately
Contact: Anthony Sciuto +61 412 434 347
BHP Group Limited - Economic Contribution Report 2023
Introduction
Our Economic Contribution Report (Report) for the year ended 30 June 2023 was
released today.
BHP has delivered a strong set of results in FY2023, against a backdrop of
economic uncertainty. In FY2023, BHP achieved both production guidance and
growth across each of our commodities, including record annual production at
Western Australia Iron Ore, Olympic Dam and Spence. Overall, we saw lower
revenue in FY2023 due to weaker prices in key commodities. On the cost side,
we managed the impact of inflation well, relative to the market, through
disciplined cost control.
The strength of our portfolio, our operating excellence, our people and
ongoing commitment to social value should position us well to continue growing
value for our shareholders and support the communities in the countries where
we operate.
BHP has a long-standing commitment to transparency. We recognise taxes are
important sources of government revenue and are central to the fiscal policy
and macroeconomic stability of countries. Paying the right amount of taxes and
royalties enables governments to finance and deliver on national development
plans for the benefit of the broader community to promote sustainable economic
growth, full and productive employment, and reduce poverty and inequality
within and among countries. We have disclosed details of our tax and royalty
payments for more than 20 years and we have continually updated and expanded
our disclosures. The Economic Contribution Report aims to provide a greater
understanding of BHP's global tax profile, tax contributions and the manner in
which we govern and manage our tax obligations.
BHP is subject to the different tax regimes and complies with applicable tax
laws in all the countries where we operate, including the Organisation for
Economic Co-operation and Development (OECD) Country-by-Country reporting.
This information provides tax authorities around the world with details of how
we conduct our business and how BHP's entities transact with each other.
Our Economic Contribution Report 2023 has today been submitted to the FCA
National Storage Mechanism and will shortly be available for inspection at
https://data.fca.org.uk/#/nsm/nationalstoragemechanism
(https://data.fca.org.uk/#/nsm/nationalstoragemechanism) . It is also
available to be downloaded on the BHP website at:
https://www.bhp.com/-/media/Documents/Investors/Annual-Reports/2023/230822_bhpeconomiccontributionreport2023.pdf
(https://www.bhp.com/-/media/Documents/Investors/Annual-Reports/2023/230822_bhpeconomiccontributionreport2023.pdf)
BHP's total direct economic contribution for FY2023 was US$54.2 billion. This
includes contribution to suppliers, wages and benefits for more than 80,000
employees and contractors, dividends, taxes, royalties and voluntary
investment in social projects across the communities where we operate. In
FY2023, our tax, royalty and other payments to governments totalled US$13.8
billion. Of this, 88 per cent or US$12.1 billion was paid in Australia. This
made BHP one of the largest corporate taxpayers in Australia in FY2023. During
the last decade, we paid US$94.2 billion globally in taxes, royalties and
other payments to governments, including US$74.9 billion (approximately
A$101.0 billion) in Australia.
Below are extracted sections of our full Economic Contribution Report 2023
that together meet our UK regulatory obligations under DTR 4.3A of the
Financial Conduct Authority's Disclosure Guidance and Transparency Rules and,
where required by DTR 4.3A, the Reports on Payments to Governments Regulations
2014 (as amended).
Our payments to governments
BHP has prepared this information on the basis set out in the Basis of Report
preparation and Glossary sections of the Economic Contribution Report FY2023.
Payments made by country and level of government
US$ millions Corporate Income Tax Royalty-related Income Tax Total taxes paid Royalties Fees Payments for infrastructure improvements Total payments as defined by the UK Requirements Other Payments Total payments to governments
Total payments to governments 9,067.5 250.9 9,318.4 4,014.2 38.7 41.8 13,413.1 358.8 13,771.9
Australia 7,729.1 - 7,729.1 4,013.8 23.8 40.1 11,806.8 322.0 12,128.8
Australian Taxation Office 7,729.1 - 7,729.1 - - - 7,729.1 29.4 7,758.5
Central Highlands Regional Council - - - - - - - 3.3 3.3
City of Kalgoorlie-Boulder - - - - - - - 0.2 0.2
City of Rockingham - - - - - - - 0.1 0.1
Coal Mining Industry Long Service - - - - - - - 16.9 16.9
Isaac Regional Council (Queensland) - - - - - - - 6.9 6.9
Mackay Regional Council (Queensland) - - - - - - - 0.5 0.5
Municipal Council of Roxby Downs - - - - - - - 1.0 1.0
Muswellbrook Shire Council (New South Wales) - - - - - 0.1 0.1 3.7 3.8
Shire of Ashburton (Western Australia) - - - - - - - 0.6 0.6
Shire of Dundas - - - - - - - 0.1 0.1
Shire of East Pilbara (Western Australia) - - - - - - - 4.9 4.9
Shire of Leonara (Western Australia) - - - - - - - 0.9 0.9
Shire of Wiluna (Western Australia) - - - - - - - 1.2 1.2
State of New South Wales - - - 303.6 1.9 - 305.5 7.1 312.6
State of Queensland - - - 1,755.9 1.5 3.0 1,760.4 70.0 1,830.4
State of South Australia - - - 98.4 2.1 - 100.5 29.7 130.2
State of Victoria - - - - - - - (7.6) (7.6)
State of Western Australia - - - 1,855.9 17.6 37.0 1,910.5 134.6 2,045.1
Town of Port Hedland (Western Australia) - - - - - - - 17.0 17.0
Other Australian Governments - - - - 0.7 - 0.7 1.5 2.2
Brazil 0.1 - 0.1 0.4 - - 0.5 2.6 3.1
Federal Tax Revenue Ministry 0.1 - 0.1 - - - 0.1 2.6 2.7
National Mining Agency - - - 0.4 - - 0.4 - 0.4
Canada 11.9 - 11.9 - 8.6 1.1 21.6 5.2 26.8
Canada Revenue Agency 11.9 - 11.9 - - - 11.9 1.8 13.7
Finances Quebec - - - - - 0.1 0.1 0.1 0.2
Government of Saskatchewan - - - - 8.6 - 8.6 0.1 8.7
Ministry of Finance - Ontario - - - - - - - 0.1 0.1
Rural Municipality of Leroy (Saskatchewan) - - - - - 0.2 0.2 3.0 3.2
Rural Municipality of Prairie Rose (Saskatchewan) - - - - - 0.2 0.2 0.1 0.3
Rural Municipality of Usborne - - - - - 0.6 0.6 - 0.6
Other Canadian Governments - - - - - - - - -
Chile(1) 1,195.3 250.9 1,446.2 - 5.4 - 1,451.6 22.0 1,473.6
Servicio De Impuestos Internos 1,195.3 250.9 1,446.2 - 5.4 - 1,451.6 22.0 1,473.6
China 3.1 - 3.1 - - - 3.1 - 3.1
China Tax Bureau 3.1 - 3.1 - - - 3.1 - 3.1
India 0.7 - 0.7 - - - 0.7 - 0.7
Income Tax Department 0.7 - 0.7 - - - 0.7 - 0.7
Japan 0.4 - 0.4 - - - 0.4 - 0.4
National Tax Agency 0.4 - 0.4 - - - 0.4 - 0.4
Malaysia 1.3 - 1.3 - - - 1.3 - 1.3
Inland Revenue Board 1.3 - 1.3 - - - 1.3 - 1.3
Netherlands 0.9 - 0.9 - - - 0.9 - 0.9
Tax and Customs Administration 0.9 - 0.9 - - - 0.9 - 0.9
Peru 16.4 - 16.4 - - - 16.4 0.2 16.6
National Superintendency of Customs And Tax Administration 16.4 - 16.4 - - - 16.4 - 16.4
Republica Del Peru - - - - - - - 0.2 0.2
Philippines 0.7 - 0.7 - - - 0.7 0.4 1.1
Bureau of Internal Revenue 0.5 - 0.5 - - - 0.5 0.4 0.9
Other Philippines Governments 0.2 - 0.2 - - - 0.2 - 0.2
Singapore 92.2 - 92.2 - - - 92.2 - 92.2
Inland Revenue Authority of Singapore 92.2 - 92.2 - - - 92.2 - 92.2
Switzerland 0.2 - 0.2 - - - 0.2 - 0.2
Canton of Zug 0.2 - 0.2 - - - 0.2 - 0.2
United Kingdom 5.3 - 5.3 - - - 5.3 3.9 9.2
City of Westminster - - - - - - - 0.9 0.9
HM Revenue & Customs 5.3 - 5.3 - - - 5.3 3.0 8.3
United States of America 9.9 - 9.9 - 0.9 0.6 11.4 2.5 13.9
Arizona Department of Revenue - - - - 0.1 - 0.1 - 0.1
Internal Revenue Service - - - - - - - 2.0 2.0
U.S. Department of The Treasury 9.8 - 9.8 - - - 9.8 - 9.8
U.S. Nuclear Regulatory Commission - - - - 0.3 - 0.3 - 0.3
Utah State Tax Commission - - - - 0.2 - 0.2 - 0.2
State of New Mexico 0.1 - 0.1 - 0.1 - 0.2 - 0.2
Bureau of Land Management - - - - 0.1 - 0.1 - 0.1
Pinal County - - - - - - - 0.4 0.4
Other US Governments - - - - 0.1 0.6 0.7 0.1 0.8
Figures are rounded to the nearest decimal point.
1 Income and mining taxes are paid in Chile on a calendar year
basis. However, for the purpose of this Report, taxes paid are included for
BHP's financial year (1 July 2022 to 30 June 2023). For reference, income tax
and specific tax on mining activities paid by Escondida and Pampa Norte for
CY2022 amount to US$1,265.0 million (Escondida) and US$1.3 million (Pampa
Norte).
Payments made on a project-by-project basis
US$ millions Corporate Income Tax Royalty-related Income Tax Total taxes paid Royalties Fees Payments for infrastructure improvements Total payments as defined by the UK Requirements Other Payments Total payments to governments
Total payments to governments 9,067.5 250.9 9,318.4 4,014.2 38.7 41.8 13,413.1 358.8 13,771.9
Minerals Americas 1,207.6 250.9 1,458.5 0.4 14.2 1.0 1,474.1 29.4 1,503.5
Escondida 1,305.7 249.7 1,555.4 - 0.8 - 1,556.2 19.9 1,576.1
Other Copper 2.7 - 2.7 0.4 1.1 - 4.2 1.0 5.2
Pampa Norte (118.3) 1.2 (117.1) - 3.7 - (113.4) 1.2 (112.2)
Potash Canada - - - - 8.6 1.0 9.6 4.7 14.3
BHP Billiton Brasil Ltda(1) (0.3) - (0.3) - - - (0.3) 2.6 2.3
RAL Cayman Inc(2) 17.8 - 17.8 - - - 17.8 - 17.8
Minerals Australia 7,670.1 - 7,670.1 4,013.8 23.5 40.1 11,747.5 319.4 12,066.9
New South Wales Energy Coal 590.8 - 590.8 303.6 1.9 0.1 896.4 14.1 910.5
Nickel West 99.3 - 99.3 34.2 3.6 - 137.1 28.2 165.3
Copper South Australia 78.3 - 78.3 98.4 2.1 - 178.8 31.3 210.1
Other Coal (0.8) - (0.8) - - - (0.8) 28.7 27.9
BHP Mitsubishi Alliance(3) 1,734.4 - 1,734.4 1,755.9 1.5 3.0 3,494.8 82.1 3,576.9
Western Australia Iron Ore 5,168.1 - 5,168.1 1,821.7 14.4 37.0 7,041.2 135.0 7,176.2
Group and Unallocated 189.8 - 189.8 - 1.0 0.7 191.5 10.0 201.5
Corporate(4) 190.7 - 190.7 - - - 190.7 9.0 199.7
Commercial 18.3 - 18.3 - - - 18.3 - 18.3
Other (19.2) - (19.2) - 1.0 0.7 (17.5) 1.0 (16.5)
Figures are rounded to the nearest decimal point.
1 Holding company of Samarco equity accounted investment.
2 Holding company of Antamina equity accounted investment.
3 Royalties, fees and other payments made by BM Alliance Coal
Operations Pty Limited have been included in total payments to the extent of
BHP's ownership of the operating entity, being 50 per cent.
4 The corporate income tax amount predominantly reflects the
allocation of the Australian corporate income tax liability among members of
the Australian tax consolidated group. For more information refer to Basis of
Report preparation section.
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