| 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. It is also available to be downloaded on the BHP website at:
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.
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