BHP’s (ASX:BHP) 2024 Economic Contribution Report shows the mining heavyweight injected $52.9 billion in value into the Australian economy in the 2024 financial year (FY24).
The company, which has a market capitalisation of just under $200 billion, spent $22.2 billion with suppliers and around $700 million of that went directly to 240 Indigenous suppliers, marking a 75% year-over-year increase.
BHP President Australia Geraldine Slattery says the company is on track to meet its goal of procuring $1.5 billion of goods and services from Aboriginal and Torres Strait Islander and Traditional Owner businesses by the end of FY27.
The miner is also providing $20 million in funding over two years for Melbourne Business School’s major Indigenous initiatives.
In FY24, BHP paid $14.5 billion to Australian governments via taxes, royalties and other payments.
“The $14.5 billion in taxes, royalties and other payments we made to Australian governments last financial year is around half what the federal government spends annually to run public hospitals across Australia,” Slattery notes.
BHP expects to fund around 6% of total company tax in the 2024 financial year.
CFO Vandita Pant says BHP was one of the largest corporate taxpayers in Australia in FY24.
“During the last decade, we paid US$95.1 billion ($142.5 billion) globally in taxes, royalties and other payments to governments, including US$76.6 billion in Australia,” she says.
“Our global adjusted effective tax rate in FY2024 was 32.5%. Once royalties are included, our FY2024 rate increases to 41.7%.
“This significant tax and royalty revenue we contribute to the countries where we operate is important and helps governments provide essential services and invest in their communities.”
In FY24, BHP paid $5.6 billion in wages, incentives and benefits to its employees, $10.5 billion in dividends to Australian shareholders, and $110 million in social investment in communities.
BHP operated projects contributed 9% and 11% of all government revenue, excluding grants, in Queensland and Western Australia, respectively.
Melbourne-headquartered BHP operates mines producing copper, iron ore, metallurgical coal, nickel and potash in Australia, Brazil, Canada, Chile, Peru and the US.
In mid-July, however, the miner announced it would shutter its Western Australian nickel operations, citing oversupply and lower forward consensus prices for the battery metal.
Write to Angela East at Mining.com.au
Images: iStock
