BHP's economic contribution reaches A$60bn in Aus

18th September 2023 By: Esmarie Iannucci - Creamer Media Senior Deputy Editor: Australasia

BHP's economic contribution reaches A$60bn in Aus

PERTH (miningweekly.com) – Diversified miner BHP contributed A$60-billion in economic value to the Australian economy in the 2023 financial year, of which A$18-billion was spent in taxes, royalties and other payments to the Australian government, bringing the miner’s tax and royalty payments to over A$100-billion in Australia over the past ten years.

BHP remains one of the largest taxpayers in Australia and expects to fund approximately 8% of total Australian company tax for the 2023 financial year, at an adjusted effective tax rate of 32.1% rising to 44.9% when royalties were included.

BHP-operated projects contributed 10% and 11% of all revenue (excluding grants) in Queensland and Western Australia, respectively.

In its 2023 Economic Contribution report, BHP pointed out that the company had spent A$19.1-billion on Australian suppliers, including A$400-million with Indigenous suppliers as part of its commitment to invest A$1.5-billion with Indigenous businesses by the end of June 2027.

The miner paid A$5.3-billion in employee wages in the 2023 financial year.

Some A$17.5-billion was paid in dividends to Australian shareholders, with more than 17 million Australians benefiting from BHP dividends either directly as shareholders or indirectly through superannuation.

The BHP FutureFit Academy, launched in 2020 with a A$300-million commitment to create 2 500 new traineeships and apprenticeships over five years, has to date welcomed more than 1 100 people and turned out 500 graduates who have joined BHP in permanent jobs.

A$86-million was also spent in community investments, the miner said on Monday.

“Australia’s regional and remote communities are so important to BHP, and operating in a way that benefits the areas where we operate is at the heart of our approach,” BHP president Australia Geraldine Slattery said.

“BHP is a major contributor to Australia’s national economy and regional communities through jobs, training, local and Indigenous suppliers, taxes, royalties and social investments. We will continue to work in partnership with our many stakeholders to support Australia’s economic prosperity as we deliver the minerals needed for global economic development and decarbonisation.”