BHP 2024 Economic Contribution Report

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: [phone]
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. 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

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
Chile1	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 Ltda1	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 Inc3	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 Alliance4	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
Corporate5	(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.

 

END