Economic Contribution Report 2021 The future is clear (Form 6-K)

Economic Contribution Report 2021 The future is clear

In this Report: 1 Our contribution 02 Chief Financial Officer's introduction 04 FY2021 total economic contribution 06 BHP's response to COVID-19 08 Case study: Western Australia Iron Ore 09 Our business model 10 2 Our approach 12 Our Tax Principles 12 Our approach to transparency 13 Our contribution to development of tax policy 15 Our approach to risk management and governance 16 Our approach to compliance 17 Our approach to tax authority relationships 19 3 Our payments 20 Our payments to governments 20 4 Additional information 26 Tax and our FY2021 Financial Statements 26 Basis of Report preparation 28 Glossary 30 Independent Auditor's Report to the Directors of BHP Group Limited and BHP Group Plc 31 Corporate directory 32 The Economic Contribution Report 2021 is available online at: bhp.com BHP Group Limited. ABN 49 004 028 077. Registered in Australia. Registered office: 171 Collins Street, Melbourne, Victoria 3000, Australia. BHP Group Plc. Registration number 3196209. Registered in England and Wales. Registered office: Nova South, 160 Victoria Street London SW1E 5LB United Kingdom. Each of BHP Group Limited and BHP Group Plc is a member of the Group, which has its headquarters in Australia. BHP is a Dual Listed Company structure comprising BHP Group Limited and BHP Group Plc. The two entities continue to exist as separate companies but operate as a combined Group known as BHP. The headquarters of BHP Group Limited and the global headquarters of the combined Group are located in Melbourne, Australia. The headquarters of BHP Group Plc are located in London, United Kingdom. Both companies have identical Boards of Directors and are run by a unified management team. Throughout this publication, the Boards are referred to collectively as the Board. Shareholders in each company have equivalent economic and voting rights in the Group as a whole. In this Report, the terms 'BHP', 'Group', 'BHP Group', 'we', 'us', 'our' and 'ourselves' are used to refer to BHP Group Limited, BHP Group Plc and, except where the context otherwise requires, their respective subsidiaries.

We are BHP, a leading global resources company. Our Purpose Our purpose is to bring people and resources together to build a better world. Our Values Sustainability Putting health and safety first, being environmentally responsible and supporting our communities. Integrity Doing what is right and doing what we say we will do. Respect Embracing openness, trust, teamwork, diversity and relationships that are mutually beneficial. Performance Achieving superior business results by stretching our capabilities. Simplicity Focusing our efforts on the things that matter most. Accountability Defining and accepting responsibility and delivering on our commitments. We are successful when: - Our people start each day with a sense of purpose and end the day with a sense of accomplishment. - Our teams are inclusive and diverse. - Our communities, customers and suppliers value their relationships with us and are better off for our presence. - Our asset portfolio is world-class and sustainably developed. - Our operational discipline and financial strength enables our future growth. - Our shareholders receive a superior return on their investment. - Our commodities support continued economic growth and decarbonisation.

1. Our contribution Global Total economic contribution Over last 10 years US$84.0bn Global taxes, royalties and other payments to governments In FY2021 US$40.9bn Total economic contribution Suppliers(1) Shareholders, lenders Social Employees(1) US$16.5bn and investors investments(1)(2) US$4.4bn Payments made to our US$8.7bn US$175m Employee expenses for salary, suppliers for the purchase of Dividend and interest Community contributions wages and incentives utilities, goods and services payments around 80,000 Employees and contractors Total payments to governments US$11.1bn Income taxes, royalty-related income taxes, royalties and other payments to governments 34.1% 40.7% global adjusted once royalties effective tax rate are included The data presented in this Report has been prepared on the basis set out in 'Basis of Report preparation' section. (1) Calculated on an accruals basis. (2) Total BHP's social equity investment share in community includes community contributions contributions for operated and and associated non-operated administrative joint ventures. costs Our (including social investment US$1.9 million target to facilitate is not less the than operation 1 per cent of the of pre-tax BHP Foundation) profits invested and in community programs, including cash and administrative costs, calculated on the average of the previous three years' pre-tax profit. 02 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information Australia Total economic contribution Over last 10 years ~A$80.3bn (US$65.4 billion) in Australian taxes, royalties and other payments to governments In FY2021 A$34.1bn (US$25.6 billion) Total economic contribution in Australia Suppliers(1) Shareholders, lenders Social Employees(1) A$11.1bn(2) and investors investments(1) A$4.5bn(2) (US$8.3 billion) payments A$6.0bn(2) A$100m(2) (US$3.4 billion) Payments made to our suppliers for the (US$4.5 billion) Dividend (US$75 million) Community to employees purchase of utilities, goods and interest payments contributions and services around 45,000 Employees and contractors Total payments to governments A$12.4bn(3) (US$9.4 billion) in Australian taxes, royalties and other payments to governments 32.9% 41.4% Australian adjusted once royalties effective tax rate are included BHP remains one of the largest taxpayers in Australia. The data presented in this Report has been prepared on the basis set out in 'Basis of Report preparation' section. (1) Calculated on an accruals basis. (2) FY2021 amounts for Australia are translated at the FY2021 average rate of AUD/USD 0.75. (3) Calculated based on AUD denominated payments. BHP Economic Contribution Report 2021 03

1. Our contribution continued Chief Financial Officer's introduction I am pleased to provide BHP's Economic In FY2021, our tax, royalty and other BHP's purpose is to bring people and Contribution Report for FY2021. payments to governments totalled resources together to build a better world. US$11.1 billion. Of this, 84.7 per We are proud of the valuable contribution In the past 12 months, the COVID-19 cent or US$9.4 billion was paid in we make to communities where we operate pandemic has brought human tragedy Australia. During the last decade, and to society as a whole. The economic and economic disruption globally. we paid US$84.0 billion globally in contribution we make is an important part However, against this backdrop of taxes, royalties and other payments, of this. unprecedented challenge, our people including US$65.4 billion (approximately continued to support one another and kept This significant contribution of taxation and A$80.3 billion) in Australia. our operations running safely. This enabled royalty revenue to the countries where we us to continue to provide significant Our global adjusted effective tax rate in operate gives governments the opportunity support to local businesses, regional FY2021 was 34.1 per cent, which is broadly to provide essential services to their and Indigenous communities, to protect in line with our average adjusted effective citizens and invest in their communities local jobs and continue to pay taxes and tax rate over the past decade of 33.4 per for the future. We also create value for our royalties to governments. cent. Once royalties are included, our shareholders, lenders and other investors FY2021 rate increases to 40.7 per cent. through the returns we provide, such as BHP's total direct economic contribution (1) dividends. In FY2021, we paid US$8.7 billion for FY2021 was US$40.9 billion. This includes to shareholders, lenders and investors. payments to suppliers, wages and benefits for around 80,000 employees and US$40.9bn Our investments create jobs and support contractors, dividends, taxes, royalties and the standard of living and further voluntary investment in social projects Our total economic development of the countries that we invest across the communities where we operate. contribution for FY2021 in, particularly during a time where we are focusing on a post-pandemic recovery. US$11.1bn As well as direct employment, in FY2021 we paid US$16.5 billion to our suppliers globally, Our tax, royalty and other with US$2.1 billion paid to local suppliers in payments to governments the communities where we operate. around 80,000 Employees and contractors (1) captures The ECR is the presented FY2020 final on a dividend cash basis and and FY2021 interim dividend. 'BHP's and resources purpose together is to bring to people build the a better valuable world. contribution We are proud we of we make operate to communities and to society where as a whole.' 04 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information BHP has a long-standing commitment to We believe companies should pay their transparency. We have disclosed details fair share of tax and countries should have of our tax and royalty payments for more taxation rights commensurate with value than 20 years and during that time we created in those countries. We support the have continually updated and expanded work currently being undertaken by the our disclosures. This Report meets the OECD to reach a global solution to address requirements of the Australian Voluntary Tax the tax challenges of the digitalisation of Transparency Code and aims to provide a the economy, such as a global minimum greater understanding of BHP's global tax tax. For the extractives industry, as the right profile, tax contributions and the manner to extract commodities is inherently and in which we govern and manage our substantially connected with the country tax obligations. This year, our Economic in which the commodities are located, Contribution Report 2021 reflects the such countries should continue to have requirements of the Global Reporting the right to tax profits from the extraction Initiative (GRI) Standard 207: Tax issued by of commodities. Therefore, we support the Global Sustainability Standards Board. an outcome that results in the taxing rights in relation to profits associated with BHP is subject to the different tax regimes commodities continuing to remain with that apply in each of those countries and production countries. We continue to complies with applicable taxation laws contribute to the development of a solution in all the jurisdictions where we operate, that provides for a globally competitive tax including the Organisation for Economic system that supports economic growth and Co-operation and Development (OECD) long-term sustainable tax contributions, Country-by-Country reporting measures. and one that provides certainty and This information provides tax authorities transparency on the taxing rights of profits around the world with details of how we associated with the extraction, sales and conduct our business and how BHP's marketing of commodities. international-related parties transact with each other. We look forward to continuing to make a positive contribution. David Lamont Chief Financial Officer 'In payments FY2021, to our governments tax, royalty and totalled other US$ we paid 11.1 billion. US$84.0 During billion the globally last decade, in taxes, royalties and other payments.' BHP Economic Contribution Report 2021 05

1. Our contribution continued FY2021 total economic contribution US$3.2bn Total economic contribution United Kingdom US$25.6bn Total economic contribution Australia United States US$1.4bn Total economic contribution Chile Rest of the world US$5.5bn US$5.2bn Total economic Total economic contribution contribution shareholders, Payments to Total Profit/(loss) Payments to Payments to Payments to lenders and Social economic before Number of governments suppliers(1) employees(1) investors investment(1) contribution taxation employees/ Country US$M US$M US$M US$M US$M US$M US$M contractors Australia 9,373.5 8,289.7 3,367.7 4,540.7 74.6 25,646.2 20,824.2 45,295 Chile 1,396.7 3,263.6 666.9 146.6 20.2 5,494.0 5,650.6 23,372 United States 12.3 799.8 153.9 380.5 59.8 1,406.3 (1,406.5) 1,437 United Kingdom 12.2 41.7 15.5 3,084.5 0.4 3,154.3 113.0 59 Rest of the world 267.2 4,111.8 251.7 523.2 11.9 5,165.8 340.0 6,227 Total 11,061.9 16,506.6 4,455.7 8,675.5 166.9 40,866.6 25,521.3 76,390 Equity accounted investments Colombia (Cerrejón) 34.4 - - - 1.5 35.9 (479.7) -Brazil (Samarco) 22.8 - - - - 22.8 (991.4) -United States (Resolution) - - - - 0.3 0.3 (59.4) -Peru (Antamina) 214.0 - - - 6.1 220.1 623.5 -United Kingdom (SolGold) - - - - - - (8.3) -Other (5.5) Total including equity accounted investments 11,333.1 16,506.6 4,455.7 8,675.5 174.8 41,145.7 24,600.5 76,390 (1) Calculated on an accrual basis. 06 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information Summary of payments made This significant source of taxation revenue BHP's contribution to the global economy assists governments to provide essential is significant. services to their citizens and invest in their In FY2021, our total direct economic communities for the future. contribution was US$40.9 billion, During FY2021, we paid US$8.7 billion to including payments to suppliers, wages shareholders, lenders and investors. and employee benefits, dividends and As well as our direct economic contribution, other payments to shareholders, taxes we invested US$7.1 billion into our business and royalties, as well as voluntary social through the purchase of property, plant and investment across the communities where equipment, and expenditure on exploration. we operate. Of this, we paid US$11.1 billion globally in taxes, royalties and other This investment typically has a multiplier payments to governments. Our global effect by creating new jobs within our adjusted effective tax rate was 34.1 per cent. operations and also for the suppliers on Including royalties, this increases to 40.7 who they rely. For example, refer to Case per cent. study: Western Australia Iron Ore on page 9. BHP Economic Contribution Report 2021 07

1. Our contribution continued BHP's response to COVID-19 In this together The accelerated payment program was Since that time, the funds have The COVD-19 pandemic changed the way a temporary COVID-19 measure that been invested to address immediate we live and work. However, throughout operated from March 2020 to September community needs, support remote the pandemic, we continue to persevere 2020. This program delivered more than Indigenous communities and as a community. It has taken a collective US$150 million more quickly into the hands complement government investment effort to make sure we were able to of our small and local business partners as well as supporting the pandemic continue to contribute to the immediate during this period. recovery phase to meet emerging needs needs of communities impacted by the and impacts across the key areas of Given its success, the program will be pandemic, and then to help organisations employment and training, technology implemented permanently for all small, and local businesses participate in and wellbeing. Over 850,000 people local and Indigenous businesses globally economic recovery. have so far directly benefited from the from 1 July 2021. This change will benefit donations and more than one-third At the start of the COVID-19 outbreak, approximately 4,000 supply partners of funding was invested specifically we introduced several initiatives to help across 31 countries, including the key to support Indigenous communities. reduce the economic burden on our supply operating regions of Australia, Chile, More information on the VRF, including a partners so they could remain operational, the United States, Canada, Mexico, and case study and other initiatives to support including the implementation of an Trinidad and Tobago, where we spend communities where we operate that are accelerated payment program, reducing approximately US$2.5 billion each year with experiencing the impact of COVID-19, is our payment terms from 30 days to seven small, local and Indigenous businesses. days for small, local and Indigenous available at bhp.com. businesses in Australia and across our In March 2020, we established the Vital Petroleum assets. Resources Fund (VRF) with a commitment of A$50 million to support response and recovery efforts associated with the impact of the COVID-19 pandemic. 08 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information Case study: Western Western Australia Australia Iron Iron Ore Ore (WAIO) is an integrated connected system of four by more processing than 1,000 hubs kilometres and five mines of rail infrastructure and port facilities in the Pilbara region. business is located The corporate headquarters in Perth. of our Iron Ore Construction of the US$3.6 billion South Flank project commenced in July 2018 with Project Completion Milestone (First Ore) achieved on target in May 2021. South Flank is the largest new mine in Western Australia in more than 50 years and will be our biggest and most advanced iron ore mine. Together with Mining Area C, it will, in time, form the largest operating iron ore hub in the world, producing 145 million tonnes of iron ore each year. The project has created around 9,000 direct and indirect jobs during its three years of construction, and more than 600 operational roles, as well as significant opportunities for our partners and Australian suppliers. More than A$4.7 billion of works has been awarded to the project with 78 per cent awarded to Australian businesses, including 41 per cent to Western Australian businesses and 37 per cent committed in the Pilbara region. BHP has contributed more than A$15 billion in iron ore royalties in the past decade and more than A$3.6 billion in social, community and training programs across the state since 2012. WAIO at a glance in FY2021 13,000 around A$3,056m Employees and contractors (US$2,307m) State royalties and other payments to governments A$8,146m A$8,136m (US$6,158m) Total taxes(1) (US$5,992m) Payments to suppliers in Australia (1) the This tax amount funding includes arrangement amounts of allocated the Australian under tax consolidated made on a project-by-project group. Refer to the basis. table in Payments BHP Economic Contribution Report 2021 09

1. Our contribution continued resources BHP's purpose together is to bring to build people a better and world. Our business model We create value - both financial and Exploration and Development social - for the stakeholders and acquisition and mining communities where we operate and also to society more broadly. We do this at With copper and nickel our primary targets. Our aim is to be the industry's best each step in our value chain. We work in operator through a focus on safety, partnership with communities. We provide operational excellence and social value. employment, purchase goods and services, pay taxes, royalties and other payments to governments and make How we contribute How we contribute contributions (such as donations) to Payments to suppliers Capital expenditure communities where we operate. We work to promote integrity and sustainability by Wages paid to employees Payments to suppliers and contractors following best practices and supporting Permits, licence fees and Wages paid to employees the work of the BHP Foundation to employment taxes improve the governance of natural Employment and sales taxes, resources for the benefit of citizens of We create and protect the value of import duties resource countries. The way we work our portfolio through the exploration Contributions to communities where provides a competitive advantage for and acquisition of new resources in we operate our shareholders. Value is created for future facing commodities. Payments to governments during the exploration Development involves construction of our shareholders, lenders and investors, phase are usually relatively low, reflecting facilities, excavation and any supporting including pension and superannuation the high levels of investment and risk infrastructure that is required. This can funds, through paying dividends, interest of this work. Permits, licence fees and extend to construction of whole towns, and making other financial returns. employment taxes make up the majority of including schools, medical facilities and We contribute to society more generally as payments to governments. Contributions recreation areas. More jobs are created, we provide the building blocks essential to to communities include payments both directly in construction and more modern life for millions of people around to suppliers and contractors for any broadly through the provision of goods the world. In this way, we are aligned construction or excavation, and wages and services to the sites and workforce. with the interests of the communities to employees (often for highly skilled Contributions to local communities begin where we operate and also society more and specialist roles, such as geologists, to be made. Payments to governments are broadly: our success and contributions are metallurgists and environmental largely in the form of indirect taxes (such shared fairly. scientists). Where acquisitions occur, our as goods and services taxes or excise contribution can also include payments to fees) on equipment and materials, and governments, suppliers and contractors employment taxes. and the payment of licence fees. 10 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information Process Sales Closure and and logistics and marketing rehabilitation We process and refine ore, strive to safely We seek to maximise value through our Are considered throughout the asset life manage waste, and aim to efficiently and commercial expertise, customer insights cycle, to help minimise our impact and sustainably transport our products to and proactive risk management. optimise post-closure value for all. customer markets. How we contribute How we contribute How we contribute Net profits - corporate taxes paid Payments to suppliers and contractors Payments to suppliers and contractors Royalties paid from extraction Wages paid to employees Corporate taxes paid if alternative Payments to suppliers and contractors Corporate, employment and sales taxes, revenue streams from post-mining land import duties use are found Wages paid to employees Lower employment and sales taxes Employment and sales taxes, Sales and Marketing and Procurement import duties are separate core businesses of BHP, Land no longer required for operations connected under the Commercial is rehabilitated. Rehabilitation activities Contributions to communities where function. They are the link between BHP's are often interwoven with the continuing we operate global operations, our customers and our development of nearby operations. Once extraction begins, royalties local and global suppliers, and aligned to Payments to governments will be lower, and resource taxes begin to be paid. our assets. as will employment and payments to Employment taxes increase as the operating We sell and transport our products and suppliers and contractors, but post-mining workforce commences. Corporate obtain the goods and services that flow land uses may generate new revenue income tax may also begin to be paid; into our supply chain. Contributions streams for BHP and the local community. however, this is often lower in the early include payments to suppliers, with a years of an operation as tax losses from significant amount of spending directed the construction phase are offset against to businesses in the communities where income. Over the life of the operation, we operate. We also employ more than payments to governments will be significant. 2,500 people in our Commercial function Community contributions continue through globally. The contribution of our other the operating life. Payments to shareholders, businesses is enhanced by the activities lenders and investors also increase as of our Commercial function. Sales and income from operations is generated. As Marketing presents a single face to we invest in long-term assets, we also create markets across multiple assets, with a high-value, long-term job opportunities and view to realising maximum value for our build strong relationships with communities, products and supporting sustainability suppliers and contractors. initiatives in our downstream supply chain. BHP Economic Contribution Report 2021 11

2. Our approach Our Tax Principles It is the single most important means Our approach to tax is underpinned by which we communicate who we are, by Our Charter and Our Code, and is what we do and what we stand for, and embodied in our Tax Principles. The Risk Our Charter and Our Code of Conduct is the basis for our decision-making. and Audit Committee of the BHP Board (Our Code) define how we work at BHP. Supporting Our Charter is Our Code, which endorsed these principles and in FY2021, Our Charter describes our purpose, values helps guide our daily work. It demonstrates we conducted assurance that we have and how we measure our success. how we practically apply the commitments adhered to our Tax Principles. and values set out in Our Charter. The six principles set out below govern our global approach to tax: 1 2 3 Transparency Corporate citizenship Risk management We are transparent about the taxes and We act with integrity when engaging and governance royalties that we pay to governments with revenue authorities to support We are committed to strong governance. because we believe that openness positive and sustainable relationships. We seek to identify, assess, control and allows our shareholders, employees, Where possible, for the purposes of report tax risks in accordance with our contractors, partners, customers obtaining certainty of our tax positions, global Risk Framework. Risks identified and communities to understand the we engage with revenue authorities on a as material are reported to the Risk and contribution we make and have a greater real-time basis regarding the application Audit Committee. More information is ability to assess the integrity of the of the tax law and to identify and resolve provided on page 16. tax systems in the countries in which any disagreements on a timely basis. we operate. 4 5 6 Business rationale Compliance Advocating reform Our transactions have proper We respect and comply with the laws We support simple, stable and commercial purposes and economic of the jurisdictions in which we operate. competitive tax rules and the principle rationale. We locate business activities We meet all of our tax compliance that the taxing rights of countries should where value is optimally created. obligations on time. Our tax obligations be commensurate with where the We seek to have a tax charge that include pricing transactions in our global economic activity occurs. We engage contributes to superior business value chain according to where value is in the reform process of international performance and delivers long-term created and economic activity occurs, in tax rules (including transfer pricing) shareholder value. Accordingly, we do compliance with the OECD guidelines, and local tax rules in the jurisdictions in not engage in aggressive tax planning. and based on the arm's length principle. which we operate. We do this because we believe that tax systems should be effective, efficient and competitive, in order to support economic growth, job creation and long-term sustainable tax contributions. 12 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information Our approach We support mandatory payment disclosure We file additional reports to disclose legislation, such as the European Union (EU) payments to governments connected to transparency Accounting and Transparency Directives with our extractive activity to meet the (including as they apply in the United Extractive Sector Transparency Measures Kingdom following the UK's exit from the Act requirements in Canada. In addition, During a global pandemic, tax and broader European Union) and Section 1504 of in accordance with the UK requirements economic policy is rightly a major subject of the Dodd-Frank Wall Street Reform and under paragraph 16(2) of Schedule 19 of discussion in many jurisdictions. BHP has a Consumer Protection Act (Dodd-Frank Act) the UK Finance Act 2016, we publish Our strong commitment to demonstrating the in the United States. We also support the Tax Strategy on an annual basis. Our Tax highest standards of corporate governance voluntary publication of country-by-country Strategy for the year ended 30 June 2021 and transparency. Being open about taxes reports containing detailed quantitative is available at bhp.com. and royalties we pay to governments is data, such as revenue from related and We voluntarily disclose additional in the best interests of our shareholders, unrelated parties, profit/(loss) before tax, information, including our total direct employees, customers, the communities effective tax rate and number of employees economic contribution, profit/(loss), number where we operate and other stakeholders. for each country in which a subsidiary entity of employees and contractors, effective tax Transparency allows an informed debate is a tax resident. rates in the key countries where we operate on the integrity of tax regimes and the for the current year, reconciliation data and contribution we do and should make in the This Report and global tax comparative data from prior years. We also countries where we operate. transparency requirements provide information in relation to a number We began our journey of voluntarily This commitment is reflected in our of existing subsidiary companies, primarily disclosing our payments of taxes and support of global transparency initiatives. established for historical reasons, in 'tax royalties in 2000 when we first disclosed For example, we are a supporting company haven' countries. these payments in our annual Sustainability and represented on the Board of the Report. Since then, we have progressively Extractive Industries Transparency Initiative GRI 207 increased the detail of these annual (EITI), whose 2019 Standard requires the The GRI is the independent, international disclosures meeting global and local EITI implementing countries to develop organisation that sets the standards tax transparency requirements but also public Beneficial Ownership Registers. that represent global best practice for voluntarily disclosing additional information We continue to support the introduction of reporting publicly on a range of economic, above these requirements. public disclosure requirements relating to environmental and social impacts. GRI 207 beneficial ownership (that is, the ultimate This Report complies with a number of tax sets out disclosures related to tax and holder of the benefits of ownership of a transparency frameworks: payments to governments aimed to help company), because disclosure of beneficial promote greater transparency on an - UK Regulations: The information on our ownership is an important element in organisation's approach to taxes. payments to governments on pages 20 making sure assets and income are fully to 25 is set out in accordance with the UK We are proud to be a corporate leader in disclosed to relevant regulatory bodies, Regulations, which were introduced to transparency and have a long-standing including revenue authorities to promote implement the EU Accounting Directive. record in that regard. We recognise taxes compliance with taxation laws. - Australian Voluntary Tax Transparency are important sources of government BHP continues to advocate for the Code: We have adhered to all of the revenue and are central to the fiscal policy establishment of public beneficial Best Practice Recommendations and and macroeconomic stability of countries. ownership registers and participates in a minimum standards for 'large businesses' Key elements of GRI 207 have been integral range of public policy forums to achieve contained in the Post-Implementation to our economic and tax transparency that goal, such as OpenOwnership. Review of the Tax Transparency disclosures since 2000 and remains the OpenOwnership is the first public, open, Code Consultation Paper released case through to 2021. global database of company ownership by the Australian Board of Taxation in BHP's approach to tax is outlined in our information and provides public access February 2019. Economic Contribution Report 2021, to information on who owns seven million - B Team Responsible Tax Principles: and is based on our Tax Principles, Our companies across the globe. We are a As a founding member of the B Charter and Our Code of Conduct. member of OpenOwnership's Private Team Responsible Tax Principles, we These documents have been endorsed Sector Advisory Group and encourage our disclose details of our approach to tax by the Board, including the Economic suppliers and partners to make disclosures management, including our relationships Contribution Report, which is formally in that forum, helping to grow ownership with tax authorities, entities located in reviewed and approved by the BHP Board transparency into a global norm. low-tax jurisdictions, jurisdictions where annually. Our Tax Strategy, which we publish we have accepted tax incentives and our annually in accordance with UK regulations, approach to advocacy on tax issues. also provides a description of our approach - Global Reporting Initiative (GRI) 207: to tax. Our Economic Contribution Report 2021 reflects the requirements of GRI 207, issued by the Global Sustainability Standards Board. GRI 207 applies to reports or other materials published on or after 1 January 2021. BHP Economic Contribution Report 2021 13

2. Our approach continued As set out in our Tax Principles, we respect Our Charter and Our Code of Conduct also We will comply with GRI 207-4 by reporting and comply with the laws of the jurisdictions define how we work at BHP and inform country-by-country information for the in which we operate. Our tax obligations our process of engagement with external year ended 30 June 2020. The Country-by-include pricing transactions in our global stakeholders in all matters affecting our Country Report 2020 will be available on value chain according to where value is business, including our approach to tax. our website. created, and economic activity occurs, We believe sustainable, positive change GRI 207-4 recognises that country-by-in compliance with the OECD guidelines in society is increasingly dependent upon country report information for the time based on the arm's length principle. having effective platforms for conversation period covered by the most recent across the community to find solutions to The Risk and Audit Committee (RAC) audited consolidated financial statements common challenges. assists the Board with the oversight of risk may not be available and therefore permits management for BHP and this includes the Our approach to stakeholder engagement disclosures of information for the time oversight of tax risks. The Chief Financial is described in our Annual Report 2021 period covered by the audited consolidated Officer and the Group Tax Officer are (1.13.6 Ethics and Business Conduct, 1.14 financial statements immediately preceding accountable for the management of tax Section 172 Statement, 2.1.6 Stakeholder the most recent one. risk. Our Annual Report (refer to our Annual engagement, 2.1.15 Our conduct) and Report 2021, section 1.9 How we manage Sustainability-Our Stakeholders, with The future of global tax transparency risk), page 16 of this Report and Our Tax commentary on tax matters provided To be meaningful, information and Strategy sets out our approach to tax risk in this Report and Our Tax Strategy. data should be disclosed that is useful management and governance, including to stakeholders and in a format that is We work openly, transparently and accessible, machine-readable and easy the frameworks in place to identify, manage constructively with tax authorities and to understand and utilise. Therefore, we and monitor tax risks. regularly engage with them, including as support the establishment of a globally Our Code of Conduct sets out the part of regular assurance programs, and consistent regulatory disclosure framework, standards of behaviour for our people. consultation on tax policy. We also engage including equivalency provisions between Individuals are encouraged to report with a broader group of stakeholders on jurisdictions. In addition, we support breaches of Our Code, including unethical tax policy matters through our participation alignment between the quantitative or unlawful behaviour relating to tax. in a number of global industry and data provided to taxation authorities local associations. to comply with country-by-country reporting obligations and the data to be disclosed pursuant to any global standards advocating voluntary country-by-country reporting. The alignment of reporting under these initiatives would create a consistent basis for companies to disclose data, such as payments to governments, minimise compliance costs and make it easier for stakeholders to compare information between jurisdictions, sectors and companies. We remain concerned that the number and variety of local disclosure initiatives introduced in recent years or those under development will result in unhelpful complexity. We will continue to engage with governments, regulators and civil society organisations to move towards global consistency. We understand the connection between the disclosures we make about the taxes and royalties we pay to governments, which enable the public to see what we have paid and transparency of the contracts we have with governments, allowing comparison of our actual payments against what is required to be paid. Accordingly, we support initiatives by the governments of the countries where we operate to publicly disclose the content of our licences or contracts for the development and production of oil, gas or minerals that form the basis of our payments to governments, as outlined in the EITI Standard. John Madden Photography 14 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information Our contribution We have global competition for limited For BHP and the extractive industry, the capital across our many investment right to extract commodities is inherently to development options around the world. and substantially connected to the country where the commodities are located. We will When we assess which projects we will continue to contribute to the development of tax policy invest our capital in, tax competitiveness of a solution that provides certainty and is an important consideration. transparency on the taxing rights of profits Tax policy We make long-term investment decisions associated with the extraction, sales and We actively participate in public and, therefore, economic, political and fiscal marketing of commodities, and one that consultation processes and provide our factors impact investment decisions and provides for a globally competitive tax perspective on how best to balance the long-term operational strategies that span system that supports economic growth need for government revenues from multiple years. Stable and competitive tax and long-term sustainable tax contributions. taxation against the need to incentivise systems are critical factors in determining sustainable investment (which in turn We engage on taxation policy and taxation whether the long-term returns associated benefits communities). reform matters in the jurisdictions where with an investment are commensurate we operate. We primarily do this through In order to attract investment, tax systems with the various risks associated with a number of global industry and local should be internationally competitive that investment. associations, including the Business and stable. Our assessment of the stability of tax Council of Australia, Minerals Council of Key factors influencing the international regimes is a critical factor in assessing the Australia, Australian Petroleum Production competitiveness of a country's tax regime risks associated with particular projects. and Exploration Association, American are the corporate tax rate and the mix of We continue to support the work Petroleum Institute, Consejo Minero, taxes imposed. After returning excess being undertaken by the OECD as they US Chamber of Commerce and the cash to our shareholders in the form of develop a global solution that addresses International Council on Mining and Metals. dividends or share buy-backs and ensuring the tax challenges of the digitalisation our balance sheet is strong, we invest back of the economy. Consistent with into our business. our Tax Principles, we advocate that the taxing rights of countries should be commensurate with where the economic activity occurs. BHP Economic Contribution Report 2021 15

2. Our approach continued Our approach to These criteria relate to tax transparency, The criteria that apply to such incentives fair taxation, implementation of OECD generally include demonstration of risk management base erosion and profit shifting measures a significant contribution to the local and entity substance requirements. economy through a range of qualitative and governance The EU has published a list of 'non- and quantitative measures, such as cooperative' jurisdictions and a 'watch local employment, investment and list' of jurisdictions that have committed ongoing expenditures. Given the size, geographic scope and to address deficiencies in their tax complexity of our operations and, In FY2021, the incentives that applied to governance. The EU reviews the lists at times, uncertainty regarding the BHP were in Singapore and the Philippines. at least yearly. application of taxation laws, risk may arise In Singapore, we were granted an incentive in the determination of our tax liabilities. We have two subsidiary companies in exempting us from paying income tax on The identification and management countries on the EU's non-cooperative profit from qualifying shipping operations of risks are central to achieving our list. Details of each of these subsidiaries, (total profits from our shipping business strategic objectives. Risk management including FY2021 profits/(losses), are were approximately US$21 million in FY2021) is embedded in all our critical business included in the table below. One entity, until 30 June 2031 under the Maritime activities, functions, processes and BHP (Trinidad-3A) Limited, is incorporated Sector Incentive - Approved International systems through the application of a single in Trinidad and Tobago, and holds an Shipping (MSI-AIS) Enterprise status. framework for all risks, known as our Risk undeveloped offshore petroleum block in Framework. Under the Risk Framework, Trinidad with declared oil and gas reserves. Our Singapore Branch was awarded a the Board and senior management The other subsidiary, Marcona International, Development and Expansion Incentive (including the Executive Leadership Team) S.A., was part of a historical acquisition. under the International Headquarters Award provide oversight and monitoring of risk under the Economic Expansion Incentives We have no subsidiary company in a management outcomes. The Risk and (Relief from Income Tax) Act (Chapter country on the EU's watch list other Audit Committee assists the Board with the 86), for its activities relating to sales and than Australia. In addition, all of the oversight of risk management, including marketing in Singapore. During the incentive subsidiary companies of BHP are subject tax and royalty matters. period and subject to compliance with to the controlled foreign company tax the terms and conditions of the Incentive, In addition to the Risk Framework and our rules of either or both Australia and the qualifying income earned will be subject to Tax Principles, we have internal standards United Kingdom. a concessionary rate of 5 per cent. This is that clearly set out our approach to tax risk one of a range of incentives that is legislated Australia was added to the EU's watch list management, the level of risk the Group is and open to taxpayers in Singapore if they in 2019 due to its Offshore Banking Unit prepared to accept and escalation points can demonstrate significant contribution (OBU) regime. We have a significant number and procedures. Matters are considered to the economy and meet the ongoing of entities incorporated in Australia, all for escalation based on a number of quantitative and qualitative criteria set of which are subject to tax at the normal elements, including the quantum at risk, by the Singaporean Government. corporate tax rate of 30 per cent. None of level of technical uncertainty and change these entities benefit from Australia's OBU of law risk. In the Philippines, we were granted an regime. Given the number of our Australian income tax holiday under a Registration BHP's Tax function is also subject to entities and the Group's Australian adjusted Agreement with the Philippine Economic regular internal reviews and audits to effective tax rate in FY2021 was 32.9 per Zone Authority (PEZA), which expires provide assurance over compliance with cent, we have not disclosed our Australian in November 2021. Our income in these standards. For information on our subsidiaries in this section. the Philippines was (approximately Risk Framework, refer to section 1.9 in our US$41 million in FY2021) derived from We disclose all of our subsidiary companies, Annual Report 2021. We also set out our the operation of our shared Global including our Australian companies, approach to tax risk management and Asset Services Centre. in our Financial Statements within our governance in 'Our Tax Strategy' at Annual Report. bhp.com. We have entered into foreign investment Tax incentives agreements offered by the Government Low-tax jurisdictions of Chile, which have been in place for We have been granted tax incentives In classifying which of our subsidiary a number of years. These agreements in some countries where we operate. companies are located in low-tax provide foreign investors with various rights Where tax incentives are legislated and jurisdictions, we have applied the EU over their capital investments that give open to all qualifying taxpayers, we will list of non-cooperative jurisdictions for them certainty on project investments accept them. tax purposes, which the EU first issued in Chile for a period of time, including in December 2017. Countries were certainty on the level of taxes levied and assessed against agreed criteria for access to local exchange markets for the good governance, consistent with the movement of capital. standards of the EU member states. Companies in 'non-cooperative' countries Incorporation FY2021 before Profit/(loss) taxation to Income tax in another subject Name Jurisdiction Year (US$M) country Nature of activities(1) Appraisal and development BHP (Trinidad-3A) Ltd Trinidad and Tobago 2002 (19) - of offshore hydrocarbons Marcona International, S.A. Panama 1953 - - Holding company (legacy) (1) Holding companies hold shares in other subsidiary companies. Legacy holding companies joined the Group through historical broader acquisitions. 16 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information Our approach Our Sales and Marketing business Location Sales and Marketing is an independent Our Sales and Marketing business offices to compliance core business of BHP. It is the link between are located close to our customers in our BHP's global operations and our global key markets. customers. Our Sales and Marketing Intra-group transactions As Asia accounts for 88.4 per cent of our business adds value to BHP and the We disclose our material transactions revenue, our global minerals Sales and countries where we operate, by ensuring through the lodgement of our tax returns Marketing business is headquartered we receive the maximum price for our and other disclosures to revenue authorities. in Singapore. For proximity to oil and commodities. It achieves this by finding the For example, in Australia we comply with a gas markets, our petroleum Sales and best markets for our commodities, liaising number of country-by-country reporting Marketing business is headquartered in closely with our customers on their specific obligations, including lodging a local file, Houston, United States. Our Sales and product requirements and coordinating master file and a country-by-country report Marketing business has approximately logistics to deliver the commodities to our with the Australian Taxation Office (ATO) in 250 employees and contractors customers. For export sales from Australia, accordance with Australian taxation laws globally, with 86 of these in Singapore. our Sales and Marketing business typically (and consistent with the OECD's country- Other smaller offices are strategically buys the commodities from our Australian by-country reporting requirements). located around the world. Singapore is production assets, arranges the freight and This information provides tax authorities the Asian centre for global commodities other logistics and sells the commodities with details of how we operate our business trading and is home to the vast majority to its customers. In some instances, it will and conduct our tax affairs around the of the world's largest commodity trading provide services to the production asset world and includes details on various companies. Singapore is a world leader and act as its agent. entities' international related party dealings. in logistics capability and provides a We support the voluntary publication of base for world-class connectivity with country-by-country data and we will publish an effective transportation network. our FY2020 data on our website at bhp.com. It also provides a stable and transparent Consistent with our commitment to regulatory framework that supports trade transparency, we have voluntarily included and investment. Singapore's high living in this Report information about material standards attract highly qualified people transactions between companies in the and it has a large pool of commodities BHP Group. We outline the top four dealings trading talent in Asia, providing a highly (by quantum) between our Australian skilled and diverse workforce. business and non-Australian related parties. BHP Economic Contribution Report 2021 17

2. Our approach continued In addition to our Sales and Marketing Our assets and Sales and Marketing Intra-group administration business, we have teams from Technology, business pay annual premiums to the and technology Finance, External Affairs and Human insurance company and receive insurance BHP is a globally integrated group, with Resources based in Singapore to support monies for insured losses suffered. people frequently working together across our activities in the region. Premiums are priced in accordance with teams and geographies. For example, the arm's length principle as set out in the we have globalised functions such Profits made by our Singapore Sales OECD Guidelines. as External Affairs, Finance, Human and Marketing business The profits of Stein vary significantly Resources and Technology that provide The Singapore Sales and Marketing year-on-year depending on the value of support to our assets and our Sales and business earns a small margin on its insured events that occur. For example, in Marketing business. We also have regional sales in line with the risks and activities FY2021 and FY2020, Stein made a profit functions that provide localised support undertaken and the value added. In relative of US$157 million and US$166 million to our assets on exploration, health, safety, terms, our Sales and Marketing profits are respectively, and in FY2019 it made a loss of environment, projects, engineering and small compared with the profits made in US$96 million. The loss in FY2019 was due integrated operations. Australia from our Australian operations and the profits from our global operations. to the occurrence of several insured events Typically, a fee is charged for services that In FY2021, our main Singapore Sales where Stein paid claims of US$369 million, are provided across different entities and/ and Marketing business made profits including insured events at Olympic Dam, or jurisdictions within the BHP Group. of approximately US$776 million on Nickel West and Western Australia Iron For example, when our Group functions global commodities sales, representing Ore. The insurance proceeds payable by in Australia provide support to our assets, approximately 3.6 per cent of the FY2021 Stein to our Australian assets for these the assets are charged a service fee. profits from our Australian operations insured events are reflected in the relevant Our key jurisdictions that charge these (US$21.6 billion) and approximately 3.2 per Australian income tax returns and subject service fees are Australia, the United States, cent of the FY2021 profits from our global to Australian tax at the normal corporate Singapore, Malaysia, the Philippines, the operations (US$24.6 billion). tax rate of 30 per cent. United Kingdom and Chile. A significant Taxation Financing portion of the fees paid to and by Australian In FY2021, the profits (of approximately BHP obtains funding from a number of members of the Group are with companies US$776 million) of the Singapore Sales external sources. For example, designated in the United States and United Kingdom. and Marketing business were subject to Treasury companies obtain debt funding These fees are generally the subject corporate income tax at a reduced rate of from the external market and our Sales of agreements between the relevant 5 per cent under a tax incentive that the and Marketing business and our assets tax authorities i.e. between Australia Singaporean Government has granted receive the proceeds from the sale of our and each of the United States and BHP (refer to the Tax Incentives section). products to customers. These funds may be the United Kingdom (refer to the Tax All FY2021 profits made by BHP Billiton deployed in different ways, including capital agreements section). investment in our operations, operating Marketing AG (BMAG) from the sale of our expenditure or returns (including dividends) Australian commodities acquired from to our shareholders. We achieve efficient entities controlled by BHP Group Limited and effective cash flow management and and BHP Group Plc are taxed in Australia at concentrate our excess cash reserves the normal corporate tax rate of 30 per cent through loans and deposits between BHP under the Australian Controlled Foreign entities. These transactions usually happen Company rules. in the same jurisdiction, but can cross Guernsey insurance company multiple jurisdictions. BHP has a captive insurance company The BHP Treasury/financing companies incorporated in Guernsey (Stein Insurance that currently provide intra-group financing Company Limited), which provides are tax resident in the United Kingdom, insurance to our global portfolio of the United States or Australia. Accordingly, operated assets and our Sales and income received by the BHP financing Marketing business. The risks insured are companies is subject to tax in the United primarily property related. We choose to Kingdom, the United States or Australia self-insure these risks because it makes at normal corporate tax rates. economic sense to do so. The insurance company is located in Guernsey because We are transparent with our key tax of the expertise available, lower capital authorities on our funding arrangements. requirements and strong regulatory rules As at 30 June 2021, we have no disputes compared with other jurisdictions. with any tax authorities in relation to the Group's financing arrangements. 18 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information Our approach for FY2018. We are currently working with the Tax disputes ATO to finalise the Tax Assurance Report for Given the size, geographic scope and to tax authority FY2019 and FY2020. complexity of our operations and, at times, uncertainty regarding the application We received a 'moderate' business risk of taxation laws, we have occasional relationships review rating (known as BRR+) from Her disagreements with tax authorities over the Majesty's Revenue and Customs (HMRC) amount of taxes to be paid. In this respect, As part of our commitment to corporate in the United Kingdom. BHP is no different from other large and citizenship, we maintain positive and Tax agreements complex corporations. sustainable relationships with revenue authorities. We proactively engage with these As part of our commitment to corporate As set out in note 6 'Income tax expense' authorities to discuss potential issues and citizenship, we seek to enter into in section 3 in the Annual Report 2021, we endeavour to, where possible, resolve any agreements with revenue authorities disclose our significant uncertain tax and disagreements on a timely basis. The tax about the amount of tax we should pay on royalty matters, including disputes. authorities conduct assurance on our tax our activities, in particular, on the pricing of intra-group transactions. This gives Where possible, we engage with revenue affairs in a number of jurisdictions around the us greater certainty about our future tax authorities on a real-time basis regarding world. As part of these programs, we keep the payments and reduces the risk of tax the application of the tax law and to tax authorities updated on our business and disputes with tax authorities. identify and resolve any disagreements help them develop a deeper understanding on a timely basis. of our business through regular dialogue. In relation to the pricing of our intra-group Our risk ratings in the United Kingdom and service charges, as noted earlier in the Reconciling this Report with Australia reflect our size and complexity; Intra-group administration and technology ATO transparency data our balanced approach to tax, in particular, section, the ATO and each of HMRC in the We prepare a reconciliation of our taxes not engaging in aggressive tax planning; United Kingdom and the Internal Revenue paid in Australia to the data published and our openness and transparency in Service (IRS) in the United States have by the ATO each year under Australian our dealings with revenue authorities. agreed to the pricing of these charges mandatory corporate tax transparency BHP is currently part of the ATO's 'justified as part of bilateral advance pricing measures. This reconciliation is published trust' program. Under this program, the ATO is arrangements. We also entered into an on our website when the ATO publishes its seeking to obtain greater assurance that large agreement with the ATO in November data. The latest data published by the ATO corporates are paying the 'right' amount of 2018 in relation to the Australian taxation relates to FY2019. Our reconciliation of our tax in accordance with taxation laws. The ATO treatment of our Sales and Marketing Australian taxes paid to this data is available has issued to BHP a Tax Assurance Report for business as part of the resolution of the at bhp.com. FY2016, FY2017 and FY2018. We received an long-standing transfer pricing dispute overall provisional 'High' level of assurance with the ATO. BHP Economic Contribution Report 2021 19

3. Our payments to governments BHP has prepared this information in accordance with the UK Regulations. Our Report also addresses BHP's reporting obligations under DTR 4.3A of the Financial Conduct Authority's Disclosure Guidance and Transparency Rules. The Basis of Report preparation and Glossary sections contain information about the content of our Report and form part of our Report. Payments made by country and level of government The information on taxes paid by classification and country presented below has been prepared on the basis set out in the Basis of Report preparation section of this Report. US$M income Corporate taxes Royalty-related income taxes on Taxes production levied taxesTotal paid Total payments to governments 7,206.0 392.5 27.8 7,626.3 Algeria(1) - - - - Directorate General of Taxes - - - - Australia(2) 6,027.0 267.4 27.8 6,322.2 Australian Taxation Office 6,027.0 267.4 27.8 6,322.2 Central Highlands Regional Council - - - -Coal Mining Industry Long Service - - - -Department of Mines, Industry, Regulation and Safety (Western Australia) - - - -Isaac Regional Council (Queensland) - - - -Mackay Regional Council (Queensland) - - - -Muswellbrook Shire Council (New South Wales) - - -Shire Of Ashburton (Western Australia) - - - -Shire Of East Pilbara (Western Australia) - - - -Shire Of Leonara (Western Australia) - - - -Shire Of Wiluna (Western Australia) - - - -State Of New South Wales - - - -State Of Queensland - - - -State Of South Australia - - - -State Of Victoria - - - -State Of Western Australia - - - -Town Of Port Hedland (Western Australia) - - - -Municipal Council of Roxby Downs - - - -Other Australian Governments - - - - Barbados - - - - Government of Barbados - - - - Brazil 0.7 - - 0.7 Federal Tax Revenue Ministry 0.7 - - 0.7 Canada 2.9 - - 2.9 Canada Revenue Agency 2.7 - - 2.7 Finances Quebec 0.2 - - 0.2 Government Of Saskatchewan - - - -Ministry Of Finance - Ontario - - - -Rural Municipality Of Leroy (Saskatchewan) - - - -Rural Municipality Of Prairie Rose (Saskatchewan) - - - -Other Canadian Governments - - - - Chile(3) 1,250.7 125.1 - 1,375.8 Servicio De Impuestos Internos 1,250.7 125.1 - 1,375.8 China 0.5 - - 0.5 China Tax Bureau 0.5 - - 0.5 20 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information Our payments to governments over the last five years Our payments Group Pro_it tax Global to governments excluding exceptional items Other US$m US$m Royalties 12,000 Total taxes paid 30,000 Australia Other 10,000 Royalties 24,000 Total taxes paid 8,000 Group Pro_it 18,000 before tax 6,000 excluding 12,000 exceptional 4,000 items 6,000 2,000 0 0 FY2017 FY2018 FY2019 FY2020 FY2021 Production infrastructure Payments for Signature, and production discovery asTotal defined payments by the Other Total payments Royalties entitlements Fees improvements bonuses UK Regulations payments to governments 2,850.0 156.0 98.0 5.7 - 10,736.0 325.9 11,061.9 - 86.3 - - - 86.3 - 86.3 - 86.3 - - - 86.3 - 86.3 2,721.7 - 24.8 5.3 - 9,074.0 299.5 9,373.5 - - - - - 6,322.2 24.8 6,347.0 - - - - - - 2.6 2.6 - - - - - - 17.7 17.7 81.6 - - - - 81.6 - 81.6 - - - - - - 10.7 10.7 - - - - - - 0.6 0.6 - - - 0.1 - 0.1 3.6 3.7 - - - - - - 1.9 1.9 - - - - - - 2.7 2.7 - - - - - - 0.8 0.8 - - - - - - 1.1 1.1 62.3 - 1.9 0.1 - 64.3 9.5 73.8 300.3 - 2.0 4.6 - 306.9 62.4 369.3 76.3 - 2.2 - - 78.5 21.5 100.0 - - - - - - 6.7 6.7 2,201.2 - 16.7 - - 2,217.9 115.5 2,333.4 - - - - - - 15.7 15.7 - - - - - - 1.1 1.1 - - 2.0 0.5 - 2.5 0.6 3.1 - - 0.6 - - 0.6 - 0.6 - - 0.6 - - 0.6 - 0.6 - - - - - 0.7 3.6 4.3 - - - - - 0.7 3.6 4.3 - - 9.2 0.4 - 12.5 3.8 16.3 - - - - - 2.7 0.4 3.1 - - - 0.1 - 0.3 0.1 0.4 - - 9.1 - - 9.1 0.1 9.2 - - - - - - 0.1 0.1 - - - 0.2 - 0.2 2.9 3.1 - - - 0.1 - 0.1 - 0.1 - - 0.1 - - 0.1 0.2 0.3 - - 15.8 - - 1,391.6 5.1 1,396.7 - - 15.8 - - 1,391.6 5.1 1,396.7 - - - - - 0.5 - 0.5 - - - - - 0.5 - 0.5 BHP Economic Contribution Report 2021 21

3. Our payments continued US$M income Corporate taxes Royalty-related income taxes on Taxes production levied taxesTotal paid Ecuador - - - - Government of Ecuador - - - - India - - - - Income Tax Department - - - - Indonesia 2.3 - - 2.3 Kantor Pelayanan Pajak Wajib 2.3 - - 2.3 Japan 0.1 - - 0.1 National Tax Agency 0.1 - - 0.1 Malaysia 2.2 - - 2.2 Inland Revenue Board 2.2 - - 2.2 Mexico 4.8 - - 4.8 Mexican Federal Tax Administration 4.8 - - 4.8 Netherlands 1.6 - - 1.6 Tax and Customs Administration 1.6 - - 1.6 Peru 35.7 - - 35.7 Republica Del Peru - - - -National Superintendency of Customs And Tax Administration 35.7 - - 35.7 Philippines - - - - Bureau of Internal Revenue - - - - Singapore 2.8 - - 2.8 Inland Revenue Authority of Singapore 2.8 - - 2.8 South Korea 0.8 - - 0.8 Government of South Korea 0.8 - - 0.8 Switzerland 1.7 - - 1.7 Canton of Zug 1.7 - - 1.7 Trinidad and Tobago(4) 6.1 - - 6.1 Board of Inland Revenue 6.1 - - 6.1 United Kingdom 8.8 - - 8.8 City of Westminster - - - -Her Majesty's Revenue & Customs 8.8 - - 8.8 United States of America (142.7) - - (142.7) Arizona Department Of Revenue - - - -Arizona State Land Department - - - -Bureau Of Land Management - - - -Internal Revenue Service (0.1) - - (0.1) Louisiana Department Of Revenue - - - -Texas Comptroller 13.0 - - 13.0 Treasury General Account 14.5 - - 14.5 U.S. Nuclear Regulatory Commission - - - -U.S. Department Of The Interior - - - -U.S. Department Of The Treasury(5) (170.1) - - (170.1) Utah State Tax Commission - - - -Washington Department Of Revenue - - - -Other U.S. Governments - - - - Figures are rounded to the nearest decimal point. (1) Production entitlements of 1.6 million barrels of oil equivalent (boe) paid in-kind. (2) Payments Offshore Petroleum made for royalties (Royalty) in Act relation 2006, to the the royalties North West are assessed Shelf of US$ and 81.6 collected million on relate behalf to the of the ad Commonwealth valorem royalty over by the which Government the Commonwealth of Western has Australia jurisdiction. Department Under of the Mines, Industry, Regulation and Safety. Payments are currently allocated between the Commonwealth (approximately one-third) and Western Australia (approximately two-thirds). (3) (1 Income July 2020 and to mining 30 June taxes 2021) are . For paid reference, in Chile on income a calendar tax and year specific basis. However, tax on mining for the activities purpose paid of this by Escondida Report, taxes and paid Pampa are included Norte for for calendar BHP's financial year 2020 year amount to US$880.8 million (Escondida) and US$57.9 million (Pampa Norte). (4) Production entitlements of 3.2 million boe paid in-kind. (5) This Security amount Act (CARES represents Act) a signed refund into of taxes law on paid 27 from March the 2020, US Department which accelerated of Treasury refunds due of to alternative US tax law minimum changes arising tax credits. from Coronavirus Aid, Relief, and Economic 22 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information Production infrastructure Payments for Signature, and production discovery asTotal defined payments by the Other Total payments Royalties entitlements Fees improvements bonuses UK Regulations payments to governments - - 0.3 - - 0.3 - 0.3 - - 0.3 - - 0.3 - 0.3 - - - - - - - - - - - - - - - - - - - - - 2.3 - 2.3 - - - - - 2.3 - 2.3 - - - - - 0.1 - 0.1 - - - - - 0.1 - 0.1 - - - - - 2.2 - 2.2 - - - - - 2.2 - 2.2 - - 2.4 - - 7.2 4.3 11.5 - - 2.4 - - 7.2 4.3 11.5 - - - - - 1.6 - 1.6 - - - - - 1.6 - 1.6 - - 0.6 - - 36.3 - 36.3 - - 0.6 - - 0.6 - 0.6 - - - - - 35.7 - 35.7 - - - - - - 0.4 0.4 - - - - - - 0.4 0.4 - - - - - 2.8 - 2.8 - - - - - 2.8 - 2.8 - - - - - 0.8 - 0.8 - - - - - 0.8 - 0.8 - - - - - 1.7 - 1.7 - - - - - 1.7 - 1.7 - 69.7 21.5 - - 97.3 1.9 99.2 - 69.7 21.5 - - 97.3 1.9 99.2 - - - - - 8.8 3.4 12.2 - - - - - - 0.9 0.9 - - - - - 8.8 2.5 11.3 128.3 - 22.8 - - 8.4 3.9 12.3 - - 0.2 - - 0.2 - 0.2 - - - - - - 0.5 0.5 - - - - - - - - - - - - - (0.1) - (0.1) - - - - - - - - - - - - - 13.0 3.0 16.0 - - - - - 14.5 0.3 14.8 - - 0.2 - - 0.2 - 0.2 128.3 - 21.8 - - 150.1 - 150.1 - - - - - (170.1) - (170.1) - - 0.1 - - 0.1 - 0.1 - - 0.3 - - 0.3 - 0.3 - - 0.2 - - 0.2 0.1 0.3 BHP Economic Contribution Report 2021 23

3. Our payments continued Payments made on a project-by-project basis Taxes paid by classification and project presented in this section have been prepared on the basis set out in the Basis of Report preparation section of this Report. US$M income Corporate taxes Royalty-related income taxes on Taxes production levied taxesTotal paid Total payments to governments 7,206.0 392.5 27.8 7,626.3 Petroleum 37.1 267.4 27.8 332.3 Algeria Joint Interest Unit(1) (1.1) - - (1.1) Australia Joint Interest Unit 2.0 - - 2.0 Australia Production Unit - Victoria (2.5) (0.1) - (2.6) Australia Production Unit - Western Australia (51.9) 97.6 - 45.7 Bass Strait 48.5 169.9 - 218.4 Gulf of Mexico 4.9 - - 4.9 North West Shelf 180.6 - 27.8 208.4 Trinidad and Tobago Production Unit(2) 0.5 - - 0.5 UK Production Unit 2.8 - - 2.8 Other(3) (146.7) - - (146.7) Minerals Americas 1,277.3 125.1 - 1,402.4 Escondida 1,181.7 125.1 - 1,306.8 Other Copper 2.5 - - 2.5 Pampa Norte 57.2 - - 57.2 Potash Canada 0.1 - - 0.1 Head Office - BHP Billiton Brasil Ltda - - - -Head Office - RAL Cayman Inc 35.8 - - 35.8 Minerals Australia 6,435.7 - - 6,435.7 New South Wales Energy Coal - - - -Nickel West 28.8 - - 28.8 Olympic Dam (7.5) - - (7.5) Other Coal 32.3 - - 32.3 Queensland Coal(4) 224.3 - - 224.3 Western Australia Iron Ore 6,157.8 - - 6,157.8 Group and Unallocated (544.1) - - (544.1) Closed Sites 3.8 - - 3.8 Corporate(5) (563.5) - - (563.5) Commercial 15.6 - - 15.6 Figures are rounded to the nearest decimal point. (1) Production entitlements of 1.6 million boe paid in-kind. (2) Production entitlements of 3.2 million boe paid in-kind. (3) signed Includes into a refund law on of 27 taxes March paid 2020, from which the US accelerated Department refunds of Treasury of alternative due to US minimum tax law tax changes credits. arising from Coronavirus Aid, Relief, and Economic Security Act (CARES Act) (4) entity, Royalties, being fees 50 and per other cent. 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 (5) For The more corporate information, income refer tax amount to Basis predominantly of Report preparation reflects section. the allocation of the Australian corporate income tax liability among members of the Australian tax consolidated group. 24 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information Production infrastructure Payments for Signature, and production discovery asTotal defined payments by the Other Total payments Royalties entitlements Fees improvements bonuses UK Regulations payments to governments 2,850.0 156.0 98.0 5.7 - 10,736.0 325.9 11,061.9 209.9 156.0 48.2 - - 746.4 15.8 762.2 - 86.3 - - - 85.2 - 85.2 - - - - - 2.0 - 2.0 - - - - - (2.6) - (2.6) - - 1.6 - - 47.3 5.1 52.4 - - - - - 218.4 1.2 219.6 128.3 - 22.0 - - 155.2 3.3 158.5 81.6 - - - - 290.0 - 290.0 - 69.7 21.5 - - 91.7 1.9 93.6 - - - - - 2.8 - 2.8 - - 3.1 - - (143.6) 4.3 (139.3) - - 26.0 0.3 - 1,428.7 12.2 1,440.9 - - 13.0 - - 1,319.8 2.5 1,322.3 - - 0.9 - - 3.4 0.7 4.1 - - 2.8 - - 60.0 2.0 62.0 - - 9.3 0.3 - 9.7 3.4 13.1 - - - - - - 3.6 3.6 - - - - - 35.8 - 35.8 2,640.1 - 23.2 5.3 - 9,104.3 280.1 9,384.4 62.3 - 1.8 0.2 - 64.3 14.6 78.9 26.0 - 3.2 - - 58.0 21.6 79.6 76.3 - 2.3 - - 71.1 23.1 94.2 - - - 0.3 - 32.6 16.9 49.5 300.3 - 2.0 4.8 - 531.4 85.7 617.1 2,175.2 - 13.9 - - 8,346.9 118.2 8,465.1 - - 0.6 0.1 - (543.4) 17.8 (525.6) - - 0.6 0.1 - 4.5 0.8 5.3 - - - - - (563.5) 17.0 (546.5) - - - - - 15.6 - 15.6 BHP Economic Contribution Report 2021 25

4. Additional information Tax and our FY2021 Financial Statements How here reconcile do the numbers to the tax reported expense Below are some commonly asked in your financial report? The income tax and royalty-related taxation questions to assist with better paid reported in this Report is included in section 3.1.4 Consolidated Cash Flow understanding this Report and its Statement in the Annual Report 2021, link to our Financial Statements. presented as net income tax and royalty-related taxation refunded of US$407 million and net income tax and royalty-related taxation paid of US$8,017 million. Tax expense Additionally, the reporting of revenues These also reconcile to the tax expense, or expenses in our Financial Statements presented on an accrual basis, in note 6 Why is the tax expense in your may be different to their impact on taxable Financial Statements different 'Income tax expense' in section 3 in the to the amount of tax paid you income reported in tax returns. For example, Annual Report 2021, as shown below. disclose in this Report? a piece of equipment may be depreciated for accounting purposes over a certain Set out in the table below is a summary The numbers are different because number of years, but be deductible for tax breakdown of the deferred tax expense they are calculated at different times for purposes over a different period (whether arising from differences between different purposes. shorter or longer). These differences are accounting and tax treatments as commonly known as 'deferred taxation'. shown in note 14 'Deferred tax balances' The income tax expense recorded in our in section 3 in the Annual Report 2021. Financial Statements reflects the impact Income tax expense may also be impacted on our financial position at the end of by items that don't result in an outlay of the financial year. It is designed to give cash, such as taxes paid in-kind. shareholders an indication of the amount of tax the Group expects to pay for the Deferred tax activities undertaken during that financial expense US$M year, so they can assess the impact tax may have on the financial position of the Group. Depreciation 488 For a number of reasons, this number does Exploration expenditure 347 not represent the actual cash tax paid Employee benefits (68) during that financial year. For example, Closure and rehabilitation (515) cash tax paid during that financial year Resource rent tax (309) may include payments or refunds relating Other provisions 77 to activities for a prior financial year, but Deferred income (31) may exclude final payments or refunds Deferred charges 68 that relate to activities for that financial Investments, including foreign tax credits 414 year but which occur after the end of Foreign exchange gains and losses 63 the financial year. Tax losses 678 Lease liability 67 Other 46 Total deferred tax expense charged/(credited) 1,325 Reconciliation of taxes paid to tax expense US$m 12,000 1,325 11,150 10,000 2,641 230 9,825 8,000 7,610 (656) 6,000 4,000 2,000 0 Corporate income tax Tax payments from Tax payments in Other (includes taxes Current tax expense Deferred tax arising Total tax expense taxes and royalty-related that have been prior were periods made in that FY2021 respect that will of be FY2021 made in paid in-kind) between from diŠerences accounting (current tax expense) and deferred paid FY2021 and on received a cash basis in (Opening and royalty income related tax tax (Closing subsequent income periods tax and tax treatments payable) and tax payable) royalty related 26 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information Effective tax rate What is your adjusted effective Why is your effective tax rate not the What is your effective tax rate tax rate? same as the corporate tax rate? and how is it calculated? We also report adjusted effective tax rates, The tax rate (from which the effective tax The effective tax rate is the amount of which exclude the influence of exchange rate is derived) is different in each country tax expense attributable to a year as a rate movements and exceptional items, where we operate. That tax rate applies to proportion of profit before tax. because we believe this gives a clearer the taxable profits derived in that country view of our ongoing contribution and how and any deductions, allowances, incentives Two measures of effective tax rate are it changes over time. Our global adjusted or other adjustments unique to that country. commonly used: effective tax rate for FY2021 was 34.1 As a result, our global effective tax rate will 1. Statutory effective tax rate - calculated per cent. It is reconciled to the statutory not be the same as the corporate tax rate in as total taxation expense divided by effective tax rate shown below. any particular country. accounting profit. 2. Corporate effective tax rate - calculated as total income tax expense divided 2021 by accounting profit. This excludes the before Profit Income tax impact of royalty-related taxation (such as taxation expense Petroleum Resource Rent Tax in Australia US$M US$M % and Specific Tax on Mining Activities Statutory effective tax rate 24,601 (11,150) 45.3 in Chile). Adjusted for: Exchange rate movements - (95) Outcomes for FY2021 for our key Exceptional items(1) 4,470 1,327 jurisdictions for these effective tax rate measures are shown below. These rates Adjusted effective tax rate 29,071 (9,918) 34.1 do not include royalties, but do include the (1) Refer to note 3 'Exceptional items' in section 3 in the Annual Report 2021. impact of any profits and taxation expenses that are treated as 'exceptional' items for the purposes of our Financial Statements. Statutory effective Corporate Statutory including tax rate effective effective withholding tax rate tax rate tax(1) Global % 44.4 45.3 Australia % 38.0 37.9 Chile % 26.2 30.4 36.6 (1) Includes Chilean Government withholding on taxes dividends paid by paid BHP by to the Chilean companies. in the Chile statutory These withholding effective tax taxes rate. are not reflected Adjusted e_ective tax rate and statutory e_ective tax rate 50 Adjusted CTR 47.5% Statutory ECR 45.3% 45 39.7% 40 36.7% 35.3% 35 31.4% 36.0% 34.0% 34.1% 30 33.2% FY2017 FY2018 FY2019 FY2020 FY2021 BHP Economic Contribution Report 2021 27

4. Additional information continued Basis of Report preparation The Report is prepared from data For our controlled assets, amounts included Corporate income taxes recorded in our financial systems, being in our total payments to governments Payments to governments based on taxable the same data and financial systems are 100 per cent of the assets' payments profits under legislated income tax rules. used to prepare our Financial Statements. to governments. For our non-operated This also includes payments made to In preparing the Report, we have followed and operated joint ventures, amounts revenue authorities in respect of disputed the draft guidance material produced by included in our payments to governments claims and withholding taxes. For the the Australian Accounting Standards Board. are 100 per cent of the amounts paid by purposes of allocating corporate income BHP and, in the case of BHP Mitsubishi taxes to particular countries in the Payments The 'Total payments as defined by the UK Alliance (BMA), 50 per cent of payments made by country and level of government Regulations' included in pages 20 to 25 made by the operating entity for BMA in section of this Report, withholding taxes have been prepared in accordance with which BHP has a 50 per cent ownership. are allocated to the country to which the the Reports on Payments to Governments For our investments in joint ventures and withholding taxes are remitted - for example, Regulations 2014, as amended by the associates that are equity accounted by Chilean withholding taxes paid to the Chilean Reports on Payments to Governments BHP, no amounts have been included Government are allocated to Chile. (Amendment) Regulations 2015 and the UK in our total payments to governments Regulations implement the EU Accounting Royalty-related income taxes as BHP is not the operator and does not Directive (Chapter 10, Directive 2013/34/EU) Payments to governments in relation make payments on behalf of the asset. (the 'UK Regulations'). to profits from the extraction of natural For information purposes, the BHP share Taxes, royalties and other payments to of the payments made by our significant resources, including Petroleum Resource governments are presented in this Report equity accounted investments have been Rent Tax (PRRT) in Australia and Specific Tax on a cash paid and cash received basis for shown on page 6 even though no amounts on Mining Activities (STMA) in Chile. This also the year ended 30 June 2021. have been included in our total payments includes payments to revenue authorities in to governments. respect of disputed claims. Royalty-related income taxes are presented as income Taxes, royalties and other payments, tax in section 3.1.1 Consolidated Income both cash and in-kind(non-cash), to Statement in the Annual Report 2021. governments, net of refunds, are collectively referred to in this Report as 'total payments to governments' and include the following payment categories: 28 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information Taxes levied on production Fees Other Payments to governments in relation to Payments to governments in the form Certain payments, whether made as a crude excise, carbon tax and severance of fees typically levied on the initial or single payment or as a series of related tax on the extraction of natural resources. ongoing right to use a geographical area for payments below US$100,000 (being a Taxes levied on production are presented exploration, development and/or production. lower amount than the £86,000 threshold as expenses, not income tax, in section This includes licence fees, rental fees, entry set out in the UK Regulations). 3.1.1 Consolidated Income Statement in fees and other payments for licences and/ the Annual Report 2021. or concessions. Projects Payments made on a project-by-project Royalties Payments for infrastructure basis (refer to Payments made on a project-Payments to governments in relation to improvements by-project basis section of this Report) revenue or production generated under Payments to governments for the present payments by entity when not licence agreements. This also includes construction of public infrastructure, specifically attributable to a project. payments to revenue authorities in respect such as roads, bridges and port facilities. Payments in relation to our Corporate and of disputed claims. Royalties are presented Dividend payments Commercial functions have been included as expenses, not income tax, in section Payments to governments with ownership in the total payments to governments 3.1.1 Consolidated Income Statement in the interests in specific assets; not payments to as defined by the UK Regulations. Annual Report 2021. Royalty-related income governments as holders of ordinary shares The payments are not attributable to specific taxes are excluded from royalties. in BHP. There were no dividend payments projects and reflect functional support for Production entitlements to governments for the year ended the Group that, in FY2021, consisted entirely Payments to governments entitled to a share 30 June 2021. of projects that undertook relevant activities of production under production sharing as defined by the UK Regulations. agreements. Production entitlements are Signature, discovery or production bonuses The Payments made on a project-by-project most often paid in-kind.In-kind payments basis section presents corporate income tax are measured based on the market value Payments to governments upon signing an oil and gas lease, when discovering amounts for each project/entity taking into of the commodity on the date of delivery account the effects of tax consolidation in to the government. natural resources, and/or when production has commenced. Australia. These include: - losses from one entity can be offset Other payments against taxable income of another entity Payments to governments under other within the same tax consolidated group legislated tax rules, such as payroll tax, fringe benefits tax, excise duties, property - only the head entity of a tax consolidated tax and land tax. These payments are not group is liable to make corporate income specifically required to be disclosed by tax payments to the ATO the UK Regulations. - typically, corporate tax groups allocate the aggregate corporate income tax Excluded amounts payments made by the head entity The following are not included in total to the ATO among entities within the payments to governments: Australian tax consolidated group Taxes collected Reporting currency Tax payments made to governments All payments to governments on pages on behalf of our employees. 20 to 25 have been reported in US dollars. Indirect taxes Payments denominated in currencies other Tax payments made to or received than US dollars are translated for this Report at from governments in the nature of sales the exchange rate at the date of the payment tax, value added tax and goods and unless stated otherwise. services tax. Penalties and interest Payments to governments resulting from the imposition of penalties, fees or interest. BHP Economic Contribution Report 2021 29

4. Additional information continued Glossary Adjusted effective tax rate Low-tax jurisdictions Total taxation expense excluding In classifying which countries are 'low-tax exceptional items and exchange jurisdictions', we have applied the EU list movements included in taxation expense of non-cooperative jurisdictions for tax divided by Profit before taxation and purposes, issued in December 2017 by the exceptional items. European Union and subsequently updated. The updated list used in this Report was Adjusted effective tax and royalty rate issued in February 2021. Total taxation expense excluding exceptional items and exchange and investors Payments to shareholders, lenders movements included in taxation expense plus royalty expense divided by Profit before Geographical distribution is based on taxation, royalties and exceptional items. the registered address of shareholders (for returns to shareholders, including BHP or the Group dividends) and country of incorporation BHP Group Limited and BHP Group Plc and of the borrower for interest payments. their respective subsidiaries. Profit before taxation Current tax expense Profit before taxation when The amount of corporate income tax and presented by country is adjusted for royalty-related income tax and production intercompany dividends. entitlements currently payable and Project attributable to the year, measured at rates enacted or substantively enacted at year- Consistent with the UK Regulations, a end, together with any adjustment to those project is defined as the operational taxes payable in respect of previous years. activities that are governed by a single contract, licence, lease, concession Deferred tax expense or similar legal agreements and form The amount of corporate income tax and the basis for payment liabilities with a royalty-related income tax and production government. If multiple such agreements entitlements attributable to the current year are 'substantially interconnected' they but payable in future years provided using may be considered a project. For these the balance sheet liability method. purposes 'substantially interconnected' Employees and contractors means forming a set of operationally Employee data is the weighted average and geographically integrated contracts, number of employees at the last day of licences, leases or concessions or related each calendar month for a 10-month period agreements with substantially similar terms based on BHP ownership. that are signed with a government, giving Contractor data is collected from internal rise to payment liabilities. surveys and the organisation systems and Report averages for a 10-month period. The Report has been prepared for Global Reporting Initiative Standards BHP's financial year from 1 July 2020 to The GRI Standards represent global best 30 June 2021. practice for reporting publicly on a range Social investment of economic, environmental and social Includes community contributions and impacts. Sustainability reporting based associated administrative costs (including on the Standards provides information costs borne by BHP to facilitate the about an organisation's positive or negative operation of the BHP Foundation) and BHP's contributions to sustainable development. equity share in community contributions Government for both operated and non-operated Any national, regional or local authority joint ventures. of a country (includes a department, UK Regulations agency or undertaking that is a subsidiary The Reports on Payments to Governments undertaking where the authority is the Regulations 2014, as amended. parent undertaking). Income tax expense The total of current tax expense and deferred tax expense. 30 BHP Economic Contribution Report 2021

1 Our 2 Our 3 Our 4 Additional contribution approach payments information Independent Auditor's Report to the Directors of BHP Group Ltd and BHP Group Plc Opinion This audit report has been prepared for the Auditor's Responsibilities for We have audited the Total payments to directors of BHP Group in accordance with the Audit of the Total payments governments of US$11,062 million ('Total our engagement letter with BHP Group. to governments payments to governments') of BHP Group We disclaim all responsibility to any other Our objectives are to obtain reasonable (comprising BHP Group Limited, BHP Group party for any loss or liability that the other assurance about whether the Total Plc and their respective subsidiaries) for the party may suffer or incur arising from or payments to governments is free from year ended 30 June 2021. relating to or in any way connected with the material misstatement, whether due to In our opinion, the Total payments to contents of our report or the reliance upon fraud or error, and to issue an auditor's governments of US$11,062 million in the our report by the other party. report that includes our opinion. Other Information Reasonable assurance is a high level of 'Our payments to governments' section of assurance, but is not a guarantee that BHP Group's Economic Contribution Report Other Information is financial and non-an audit conducted in accordance with 2021 ('the Report') for the year ended financial information in the Report which is Australian Auditing Standards will always 30 June 2021 is prepared, in all material provided in addition to the Total payments detect a material misstatement when it respects, in accordance with the Basis of to governments and this auditor's report. exists. Misstatements can arise from fraud Report preparation set out in the 'Basis of BHP is responsible for the other information. or error and are considered material if, Report preparation' section of the Report Our opinion on the Total payments to individually or in the aggregate, they could ('the Basis of Report preparation'). governments does not cover the other reasonably be expected to influence the Basis for Opinion information and, accordingly, we do not economic decisions of users taken on the express an audit opinion or any form of basis of this Report. We conducted our audit in accordance with Australian Auditing Standards. assurance conclusion thereon. As part of an audit in accordance with Our responsibilities under those standards In connection with our audit of the Australian Auditing Standards, we exercise are further described in the Auditor's Total payments to governments, our professional judgement and maintain Responsibilities for the Audit of the Total responsibility is to read the Other professional scepticism throughout the payments to governments section of our Information. In doing so, we consider audit. We also: report. We are independent of BHP Group whether the other information is materially - Identify and assess the risks of material in accordance with the ethical requirements inconsistent with the Total payments to misstatement of the Total payments of the Accounting Professional and Ethical governments or our knowledge obtained to governments, whether due to fraud Standards Board's APES 110 Code of Ethics in the audit, or otherwise appears to be or error, design and perform audit for Professional Accountants (including materially misstated. procedures responsive to those risks, and Independence Standards) (the Code) We are required to report if we conclude obtain audit evidence that is sufficient that are relevant to our audit of the Total that there is a material misstatement of and appropriate to provide a basis for payments to governments in Australia, this other information, and based on the our opinion. The risk of not detecting a and we have fulfilled our other ethical work we have performed on the other material misstatement resulting from responsibilities in accordance with these information that we obtained prior to fraud is higher than for one resulting requirements. We believe that the audit the date of this auditor's report, we have from error, as fraud may involve evidence we have obtained is sufficient nothing to report. collusion, forgery, intentional omissions, and appropriate to provide a basis for misrepresentations, or the override of our opinion. Responsibilities of internal control. Emphasis of Matter - Basis of Management for the - Obtain an understanding of internal Report preparation and Restriction Total payments to governments control relevant to the audit in order on Reliance BHP Group's management is responsible to design audit procedures that are We draw attention to the Basis of Report for the preparation of the Report and appropriate in the circumstances, but not preparation contained in the 'Basis of for establishing a framework in which for the purpose of expressing an opinion Report preparation' section of the Report the Total payments to governments and on the effectiveness of BHP Group's which describes the basis of accounting. other information in the Report has been internal control. This basis of accounting is of such prepared. Management has determined - Evaluate the appropriateness of the Basis importance that it is fundamental to your that this framework as set out in the Basis of of Report preparation used and related understanding of the Total payments to Report preparation contained in the 'Basis disclosures made by management. governments. Our opinion is not modified in of Report preparation' section of the Report is appropriate to the needs of the users of We communicate with the directors, respect of this matter. the Report. Management is also responsible among other matters, the planned scope for such internal controls as Management and timing of the audit and significant determines are necessary to enable the audit findings, including any significant preparation of the Report that is free from deficiencies in internal control that we material misstatement, whether due to identify during our audit. fraud or error. Ernst & Young Melbourne 2 September 2021 A member firm of Ernst & Young Global Limited Liability under Professional limited by a Standards scheme approved Legislation BHP Economic Contribution Report 2021 31

4. Additional information continued Corporate directory BHP Registered Offices BHP Corporate Centres Commercial Office BHP Group Limited Australia Chile Singapore 171 Collins Street Cerro El Plomo 6000 10 Marina Boulevard, #18-01 Melbourne VIC 3000 Piso 15 Marina Bay Financial Centre, Tower 2 Telephone Australia 1300 55 47 57 Las Condes 7560623 Singapore 018983 Telephone International +61 3 9609 3333 Santiago Telephone +65 6421 6000 Facsimile +61 3 9609 3015 Telephone +56 2 2579 5000 Facsimile +65 6421 6800 BHP Group Plc United Kingdom Facsimile +56 2 2207 6517 Nova South, 160 Victoria Street United States London SW1E 5LB 1500 Post Oak Boulevard, Telephone +44 20 7802 4000 Houston TX 77056-3004 Facsimile +44 20 7802 4111 Telephone +1 713 961 8500 Group Company Secretary Facsimile +1 713 961 8400 Stefanie Wilkinson Share Registrars and Transfer Offices Australia United Kingdom South Africa New Zealand United States BHP Group BHP Group Plc Registrar BHP Group Plc Computershare Investor Computershare Trust Limited Registrar Computershare Investor Branch Register Services Limited Company, N.A. Computershare Investor Services PLC and Transfer Secretary Level 2/159 150 Royall Street Services Pty Limited The Pavilions, Computershare Investor Hurstmere Road Canton MA 02021 Yarra Falls, 452 Bridgwater Road Services (Pty) Limited Takapuna Auckland 0622 Postal address - Johnston Street Bristol BS13 8AE Rosebank Towers Postal address - Private PO Box 43078 Abbotsford VIC 3067 Postal address (for 15 Biermann Avenue Bag 92119 Providence RI Postal address - GPO general enquiries) Rosebank 2196 Auckland 1142 02940-3078 Box 2975 The Pavilions, South Africa Telephone Telephone Melbourne VIC 3001 Bridgwater Road Postal address - Private +64 9 488 8777 +1 888 404 6340 Bristol BS99 6ZZ Bag X9000 Telephone 1300 656 780 Facsimile (toll-free within US) Saxonwold 2132 (within Australia) Telephone +64 9 488 8787 Facsimile South Africa +61 3 9415 4020 +44 344 472 7001 Email enquiries: +1 312 601 4331 (outside Australia) Telephone Facsimile enquiry@ ADR Depositary, +27 11 373 0033 Facsimile +44 370 703 6101 computershare.co.nz Transfer Agent +61 3 9473 2460 Facsimile Email enquiries: and Registrar +27 11 688 5217 Email enquiries: investorcentre.co.uk/ Citibank investorcentre.com/bhp contactus Email enquiries: Shareholder Services web.queries@ PO Box 43077 computershare.co.za Providence Holders of shares RI 02940-3077 dematerialised into Strate Telephone should contact their CSDP +1 781 575 4555 or stockbroker. (outside of US) +1 877 248 4237 How to access information on BHP (+1-877-CITIADR) (toll-free within US) BHP produces a range of publications, which are available to download at bhp.com. Facsimile If you are a shareholder, you can also elect to receive a paper copy of the Annual Report +1 201 324 3284 through one of the Share Registrars listed above. Email enquiries: citibank@shareholders -online.com Website: citi.com/dr Annual Report Modern Slavery Climate Transition Action Statement Read our reports at bhp.com 2021 2021 Plan 2021 14001. Printed 100% in Australia of the by inks IVE used on FSC® are vegetable certified oil paper. based. IVE This Environmental document is Management printed on Hanno System Silk is and certified Sumo to Offset, ISO Cover Escondida image: by Victor Burgos both The pulp papers used containing in this product fibre sourced is bleached from using well managed, an elemental responsible, chlorine free FSC® (ECF) certified process. forests. (photographer) 32 BHP Economic Contribution Report 2021

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