REG - BHP Group Limited - BHP 2024 Economic Contribution Report
27/08/2024 07:00
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RNS Number : 6975B BHP Group Limited 27 August 2024
Issued by: BHP Group Limited
Date: 27 August 2024
To: London Stock Exchange
JSE Limited
For Release: Immediately
Contact: Stefanie Wilkinson - Group Company Secretary
Tel: +61 3 9609 3333
BHP Group Limited - Economic Contribution Report 2024
Introduction
Our Economic Contribution Report (Report) for the year ended 30 June 2024 was
released today.
BHP delivered another strong set of results in FY2024, enabled by our
incredible assets, continued disciplined execution of our strategy and
superior operational capability. Our underlying attributable profit was 2 per
cent higher at US$13.7 billion due to solid operational performance and higher
commodity prices in key commodities.
The excellence of our people, the strength of our portfolio and balance sheet,
our operating excellence, financial rigour 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 have disclosed details
of our tax and royalty payments for more than 20 years and we have continually
updated and expanded our disclosures. We recognise taxes and royalties 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 their 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. The BHP Economic Contribution Report aims to
provide a greater understanding of BHP's global tax profile, tax contributions
and the way 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 2024 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/2024/240827_bhpeconomiccontributionreport2024.pdf
(https://www.bhp.com/-/media/Documents/Investors/Annual-Reports/2024/240827_bhpeconomiccontributionreport2024.pdf)
BHP's total direct economic contribution for FY2024 was US$49.2 billion. This
includes contribution to suppliers, wages and benefits for more than 90,000
employees and contractors, dividends, taxes, royalties and voluntary
investment in social projects across the communities where we operate.
In FY2024, our tax, royalty and other payments to governments totalled US$11.2
billion. Of this, 85 per cent or US$9.5 billion was paid in Australia. This
made BHP one of the largest corporate taxpayers in Australia in FY2024. During
the last decade, we paid US$95.1 billion globally in taxes, royalties and
other payments to governments, including US$76.6 billion (approximately
A$107.1 billion) in Australia.
Below are extracted sections of our full Economic Contribution Report 2024
that together meet our UK regulatory obligations under DTR 4.3A of the
Financial Conduct Authority's Disclosure Guidance and Transparency Rules and,
where required by DTR 4.3A, the Reports on Payments to Governments Regulations
2014 (as amended).
Our payments to governments
BHP has prepared this information in accordance with our UK regulatory
obligations under DTR 4.3A of the Financial Conduct Authority's Disclosure
Guidance and Transparency Rules, and on the basis set out in the Basis of
Report preparation and Glossary sections of the Economic Contribution Report
FY2024.
Payments made by country and level of government
US$M 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 6,708.2 245.9 6,954.1 3,721.5 51.2 11.1 10,737.9 477.1 11,215.0
Australia 5,287.0 - 5,287.0 3,720.0 32.6 10.1 9,049.7 417.0 9,466.7
Australian Taxation Office 5,287.0 - 5,287.0 - - - 5,287.0 31.6 5,318.6
Central Highlands Regional Council (Queensland) - - - - - - - 4.1 4.1
City of Kalgoorlie-Boulder (Western Australia) - - - - - - - 0.2 0.2
City of Rockingham (Western Australia) - - - - - - - 0.1 0.1
Coal Mining Industry Long Service - - - - - - - 22.8 22.8
Isaac Regional Council (Queensland) - - - - - - - 8.3 8.3
Mackay Regional Council (Queensland) - - - - - - - 0.5 0.5
Municipal Council of Roxby Downs (South Australia) - - - - - - - 1.3 1.3
Muswellbrook Shire Council (New South Wales) - - - - - 0.1 0.1 2.8 2.9
Shire of Ashburton (Western Australia) - - - - - - - 0.6 0.6
Shire of Dundas (Western Australia) - - - - - - - 0.1 0.1
Shire of East Pilbara (Western Australia) - - - - - - - 4.8 4.8
Shire of Leonara (Western Australia) - - - - - - - 0.9 0.9
Shire of Wiluna (Western Australia) - - - - - - - 1.2 1.2
State of New South Wales - - - 178.4 2.7 - 181.1 9.1 190.2
State of Queensland - - - 1,363.4 1.5 - 1,364.9 80.3 1,445.2
State of South Australia - - - 138.8 5.6 - 144.4 39.3 183.7
State of Victoria - - - - - - - 7.9 7.9
State of Western Australia - - - 2,039.4 22.1 10.0 2,071.5 182.6 2,254.1
Town of Port Hedland (Western Australia) - - - - - - - 17.0 17.0
Other Australian Governments - - - - 0.7 - 0.7 1.5 2.2
Brazil 55.9 - 55.9 1.5 0.1 - 57.5 17.5 75.0
Federal Tax Revenue Ministry 55.9 - 55.9 - 0.1 - 56.0 17.5 73.5
National Mining Agency - - - 1.5 - - 1.5 - 1.5
Canada 13.3 - 13.3 - 8.5 1.0 22.8 5.9 28.7
Canada Revenue Agency 13.6 - 13.6 - - - 13.6 2.3 15.9
Finances Quebec (0.1) - (0.1) - - 0.3 0.2 0.1 0.3
Government of British Columbia (0.2) - (0.2) - - - (0.2) - (0.2)
Government of Saskatchewan - - - - 8.5 - 8.5 0.1 8.6
Rural Municipality of Leroy (Saskatchewan) - - - - - 0.1 0.1 3.1 3.2
Rural Municipality of Prairie Rose (Saskatchewan) - - - - - 0.2 0.2 0.1 0.3
Rural Municipality of Usborne - - - - - 0.4 0.4 - 0.4
Other Canadian Governments - - - - - - - 0.2 0.2
Chile(1) 1,179.6 245.9 1,425.5 - 9.3 - 1,434.8 28.2 1,463.0
Servicio De Impuestos Internos 1,179.6 245.9 1,425.5 - 9.3 - 1,434.8 28.2 1,463.0
China 7.1 - 7.1 - - - 7.1 - 7.1
China Tax Bureau 7.1 - 7.1 - - - 7.1 - 7.1
Ecuador - - - - - - - 0.2 0.2
Instituto Ecuatoriano de Seguridad Social - - - - - - - 0.2 0.2
India 0.1 - 0.1 - - - 0.1 - 0.1
Income Tax Department 0.1 - 0.1 - - - 0.1 - 0.1
Japan 0.3 - 0.3 - - - 0.3 - 0.3
National Tax Agency 0.3 - 0.3 - - - 0.3 - 0.3
Malaysia 0.9 - 0.9 - - - 0.9 - 0.9
Inland Revenue Board 0.9 - 0.9 - - - 0.9 - 0.9
Netherlands 5.5 - 5.5 - - - 5.5 - 5.5
Tax and Customs Administration 5.5 - 5.5 - - - 5.5 - 5.5
Peru 19.8 - 19.8 - - - 19.8 0.2 20.0
National Superintendency of Customs and Tax Administration 19.8 - 19.8 - - - 19.8 0.2 20.0
Philippines 0.5 - 0.5 - - - 0.5 0.4 0.9
Bureau of Internal Revenue 0.3 - 0.3 - - - 0.3 0.4 0.7
Other Philippines Governments 0.2 - 0.2 - - - 0.2 - 0.2
Singapore 41.0 - 41.0 - - - 41.0 - 41.0
Inland Revenue Authority of Singapore 41.0 - 41.0 - - - 41.0 - 41.0
Switzerland 2.5 - 2.5 - - - 2.5 - 2.5
Canton of Zug 2.5 - 2.5 - - - 2.5 - 2.5
United Kingdom 20.4 - 20.4 - - - 20.4 4.1 24.5
City of Westminster - - - - - - - 1.0 1.0
HM Revenue & Customs 20.4 - 20.4 - - - 20.4 3.1 23.5
United States of America 74.3 - 74.3 - 0.7 - 75.0 3.6 78.6
Arizona Department of Revenue - - - - 0.1 - 0.1 - 0.1
Arizona State Land Department - - - - 0.1 - 0.1 - 0.1
Internal Revenue Service - - - - - - - 2.8 2.8
State of New Mexico (1.0) - (1.0) - - - (1.0) - (1.0)
U.S. Department of the Treasury 75.3 - 75.3 - - - 75.3 0.2 75.5
U.S. Nuclear Regulatory Commission - - - - 0.3 - 0.3 - 0.3
Utah State Tax Commission - - - - 0.1 - 0.1 - 0.1
Other US Governments - - - - 0.1 - 0.1 0.6 0.7
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 2023 to 30 June 2024). For reference, income tax and
specific tax on mining activities paid by Escondida for CY2023 amount to
US$1,307.0 million.
Payments made by project
US$M 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 6,708.2 245.9 6,954.1 3,721.5 51.2 11.1 10,737.9 477.1 11,215.0
Minerals Americas 1,265.5 245.9 1,511.4 1.5 17.9 0.7 1,531.5 51.6 1,583.1
BHP Billiton Brasil Ltda(1) 52.9 - 52.9 - 0.1 - 53.0 17.5 70.5
Escondida 1,210.5 245.7 1,456.2 - 0.4 - 1,456.6 22.1 1,478.7
Other Copper 8.6 - 8.6 1.5 0.9 - 11.0 1.1 12.1
Pampa Norte (33.2)(2) 0.2 (33.0) - 8.0 - (25.0) 5.4 (19.6)
Potash Canada - - - - 8.5 0.7 9.2 5.5 14.7
RAL Cayman Inc(3) 26.7 - 26.7 - - - 26.7 - 26.7
Minerals Australia 5,621.7 - 5,621.7 3,720.0 32.2 10.1 9,384.0 340.0 9,724.0
BHP Mitsubishi Alliance(4) 644.3 - 644.3 1,363.4 1.6 - 2,009.3 92.8 2,102.1
Copper South Australia 94.9 - 94.9 138.8 5.4 - 239.1 38.5 277.6
New South Wales Energy Coal 601.4 - 601.4 178.4 2.7 0.1 782.6 15.8 798.4
Other Coal 3.3 - 3.3 - - - 3.3 34.6 37.9
Western Australia Iron Ore 4,355.1 - 4,355.1 2,016.1 15.4 10.0 6,396.6 131.4 6,528.0
Western Australia Nickel (77.3)(2) - (77.3) 23.3 7.1 - (46.9) 26.9 (20.0)
Group and Unallocated (179.0) - (179.0) - 1.1 0.3 (177.6) 85.5 (92.1)
Commercial 23.5 - 23.5 - - - 23.5 - 23.5
Corporate(5) (196.6)(2) - (196.6) - 0.1 - (196.5) 84.6 (111.9)
Other (5.9)(2) - (5.9) - 1.0 0.3 (4.6) 0.9 (3.7)
Figures are rounded to the nearest decimal point.
1. Holding company of Samarco equity accounted investment.
2. Includes refunds in relation to prior periods.
3. Holding company of Antamina equity accounted investment.
4. 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.
5. 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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