6-K 1 d487722d6k.htm FORM 6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

August 22, 2023

BHP GROUP LIMITED

(ABN 49 004 028 077)

(Exact name of Registrant as specified in its charter)

VICTORIA, AUSTRALIA

(Jurisdiction of incorporation or organisation)

171 COLLINS STREET, MELBOURNE,

VICTORIA 3000 AUSTRALIA

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form

40-F: ☒ Form 20-F ☐ Form 40-F

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934: ☐ Yes ☒ No

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): n/a

Economic Contribution Report 2023 Bringing people and resources together to build a better world

In this Report: 1 Our contribution 02 Chief Financial Officer’s review 04 FY2023 total economic contribution 05 How we create and deliver value 06 Social value 08 Case study: Local Buying Program in Australia 08 Case study: Jansen Potash Project 09 Case study: Western Australia Iron Ore 10 Case study: BHP Mitsubishi Alliance 11 Case study: Chile 12 2 Our approach to tax 13 Our Tax Principles 13 Our approach to transparency 14 Our contribution to the development of tax policy 15 Our approach to tax governance and risk management 16 Our approach to compliance 17 Our approach to stakeholder engagement 19 3 Our payments 20 Our payments to governments 20 4 Additional information 26 Tax and our FY2023 Financial Statements 26 Basis of Report preparation 29 Glossary 30 Independent Auditor’s Report to the Directors of 31 BHP Group Limited Corporate directory 32 The is available Economic online Contribution at: bhp.com Report 2023 BHP Group Limited’s registered office and global headquarters are at 171 Collins Street, Melbourne, Victoria 3000, Australia. In this Report, the terms ‘BHP’, ‘Group’, ‘BHP Group’, ‘we’, ‘us’, ‘our’ and ‘ourselves’ are used to refer to BHP Group Limited and, except where the context otherwise requires, its subsidiaries. Key terms used in this Report are defined in the Glossary section of this Report (page 30). Cover image: Jansen Potash, Canada

We’ve positioned our business to support the megatrends shaping our world. Copper for renewable energy. Nickel for electric vehicles. Iron ore and higher-quality metallurgical coal for steel for new infrastructure. And we’re moving into potash to support more sustainable farming. A resource mix for today – and critical to the future.

1 Our contribution Global Total economic contribution Over last 10 years US$94.2 bn Global income taxes, royalty-related income taxes, royalties and other payments to governments In FY2023 US$54.2 bn Total economic contribution Suppliers1 Shareholders and investors Social investments2, 3 Employees2 US$22.1 bn US$13.4 bn US$150 m US$ 4.7 bn Payments to suppliers Dividend payments Community contributions Employees salary, incentives and benefits Over 80,0004 Employees and contractors Total payments to governments US$ 13.8 bn Income taxes, royalty-related income taxes, royalties and other payments to governments 30.9 % 41.3 % Global adjusted effective tax rate Once royalties are included The data presented in this Report has been prepared in accordance with the ‘Basis of Report preparation’ section. 1 Includes payments to suppliers for operating costs on an accruals basis and payments to suppliers for capital expenditure on a cash basis. 2 Calculated on an accruals basis. 3 Direct community development and environmental projects and donations, including BHP’s equity share in joint ventures. 4 Does not include employees and contractors that transitioned from the OZ Minerals business via acquisition on 2 May 2023 (1,457 employees at 30 June 2023 and around 4,000 contractors on average during FY2023). These employees and contractors are included in the overall BHP employee reporting from FY2024. 02 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information Australia Total economic contribution Over last 10 years ~A$101.0 bn (US$74.9 bn) in Australian taxes, royalty-related income taxes, royalties and other payments to governments In FY2023 A$60.0 bn (US$40.4 bn) Total economic contribution in Australia Suppliers1 Shareholders and investors Social investments2 Employees2 A$19.1 bn3 A$17.5 bn3 A$86 m3 A$5.3 bn3 (US$12.8 bn) (US$11.8 bn) (US$58 m) (US$3.6 bn) Payments to suppliers Dividend payments Community contributions Employees salary, incentives and benefits Around 50,0004 Employees and contractors Total payments to governments $18.0 5 A bn (US$12.1 bn) in Australian taxes, royalty-related income taxes, royalties and other payments to governments 32.1 % 44.9 % Australian adjusted effective tax rate Once royalties are included BHP remains one of the largest taxpayers in Australia. BHP expects to fund approximately 8% of total Australian company tax in FY2023.6 BHP-operated projects contributed 10% and 11% of all revenue (excluding grants) in Queensland7 and Western Australia,8 respectively. The data presented in this Report has been prepared in accordance with the ‘Basis of Report preparation’ section. 2 1 Includes Calculated payments on an accruals to suppliers basis for . operating costs on an accruals basis and payments to suppliers for capital expenditure on a cash basis. 4 3 Does FY2023 not amounts include employees for Australia and are contractors translated at that the transitioned FY2023 average from the rate OZ of Minerals AUD/USD business 0.673. via acquisition on 2 May 2023. 5 6 Based Calculated on the based actual on corporate A$ denominated tax paid payments in FY2023 . by BHP Group, and by comparison to forecasted 2022/2023 company tax cash receipts per the 2023/2024 Commonwealth 7 of Based Australia on the Budget actual . cash contribution paid to government in FY2023 by BHP-operated projects (including 100 per cent of BHP Mitsubishi Alliance’s contribution), and by 8 comparison Based on the to actual forecasted cash total contribution revenue paid 2022/2023 to government data (excluding in FY2023 grants) by BHP per -operated the 2023/2024 projects Queensland and by comparison Budget. to forecasted revenue 2022/2023 data per the 2023/2024 Western Australia Budget. BHP Economic Contribution Report 2023 03

1 Our contribution continued Chief Financial Officer’s review Contribution I am pleased Report to provide . BHP’s FY2023 Economic BHP has delivered a strong set of results in FY2023, against a backdrop of In FY2023, our tax, royalty and economic uncertainty. However, these achievements were overshadowed by the deaths of our colleagues Jody Byrne at our Western Australia Iron Ore other payments to governments operations and Nathan Scholz at Olympic Dam during the year. We recognise totalled US$13.8 billion. the severity and impact of these events and place critical importance on continuing to provide support to families, friends and colleagues of Jody and During the last decade, Nathan. Our highest priority is the safety of our workforce and the communities we paid US$94.2 billion where we operate. In FY2023, BHP achieved both production guidance and growth across each of globally in taxes, our commodities, including record annual production at Western Australia Iron royalties and other Ore, Olympic Dam and Spence. Overall, we saw lower revenue in FY2023 due payments to to weaker prices in key commodities. On the cost side, we managed the impact of inflation well, relative to the market, through disciplined cost control. governments.” The strength of our portfolio, our operating excellence, our people and ongoing commitment to social value should position us well to continuegrowing value for our shareholders and support the communities in the countries where This year, we celebrated a milestone of more than A$1 billion spent we operate. with small, local and Indigenous businesses across Australia since the BHP’s economic contribution commencement of our Local Buying Program. The program’s continuing BHP’s total direct economic contribution for FY2023 was US$54.2 billion. success in Australia has seen it expand to our Minerals Americas This includes contribution to suppliers, wages and benefits formore than 80,000 operations in Chile. This milestone comes as the program celebrates 10 employees and contractors, dividends, taxes, royalties and voluntary investment years, with more than 1,600 small businesses joining the BHP supply in social projects across the communities where we operate. chain, with an average payment period of seven days. The Local Buying Program is integral to how BHP supports the economic development of the In FY2023, our tax, royalty and other payments to governments otalled countries we operate in, by providing crucial support for jobs, businesses US$13.8 billion. Of this, 88 per cent or US$12.1 billion was paid in Australia. and families in regional communities, and contributing to the longevity and This made BHP one of the largest corporate taxpayers inAustralia in FY2023. vibrancy of the towns surrounding BHP’s operations. During the last decade, we paid US$94.2 billion globally in taxes, royalties and other payments to governments, including US$74.9 billion (approximately Our commitment to transparency A$101.0 billion) in Australia. Our global adjusted effective tax rate in FY2023 BHP has a long-standing commitment to transparency. We recognise taxes was 30.9 per cent. Once royalties are included, our FY2023 rate increases to are important sources of government revenue and are central to the fiscal 41.3 per cent. policy and macroeconomic stability of countries. Paying the right amount of taxes and royalties enables governments to finance and deliver on national This significant contribution of tax and royalty revenue to thecountries where development plans for the benefit of the broader community to promote we operate gives governments the opportunity to provide essential services to sustainable economic growth, full and productive employment, and reduce their citizens and invest in their communities for the future.We also create value poverty and inequality within and among countries. We have disclosed for our shareholders and investors through the returns we provide, such as details of our tax and royalty payments for more than 20 years and we dividends. In FY2023, we paid US$13.4 billion in cash dividends to shareholders have continually updated and expanded our disclosures. The Economic (FY2022 final dividend and FY2023 interim dividend), including many millions of Contribution Report aims to provide a greater understanding of BHP’s Australians who hold BHP shares directly or via their superannuation. In FY2023, we contributed US$22.1 billion to our suppliers globally, with global tax profile, tax contributions and the manner in which we govern US$2.6 billion spent with local suppliers in the communities where we operate. and manage our tax obligations. BHP is subject to the different tax regimes and complies with applicable This investment typically has a multiplier effect by creating new jobs within tax laws in all the countries where we operate, including the Organisation our operations and also for the suppliers they rely on. for Economic Co-operation and Development (OECD) Country-by-Country reporting. This information provides tax authorities around the world with details of how we conduct our business and how BHP’s entities transact with each other. Our total economic contribution for FY2023 We believe companies should pay their fair share of tax and countries should have taxing rights commensurate with value created in those countries. We also believe it is important that a country’s tax policy settings remain stable US$54.2 bn to provide businesses with the certainty needed to invest and continue to operate and support the communities in the countries where they operate. Our tax, royalty and other payments We support the work undertaken by the OECD to achieve a global solution to governments to address the tax challenges of the digitalisation of the economy. For the extractives industry, as the right to extract commodities is inherently and substantially connected with the country where the commodities are US$13.8 bn located, such countries should continue to have the right to tax profits associated with those commodities. We continue to contribute to the development and implementation of a solution that provides for a globally Employees and contractors competitive tax system that supports economic growth, job creation and viable long-term tax contributions. We are proud of our efforts to support the communities where we operate, over 80,000 and look forward to continuing to make a positive contribution in the future. David Lamont Chief Financial Officer 04 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information FY2023 total economic contribution Canada US$889 m Total economic contribution Rest of the world US$4.1 bn Total economic contribution Australia Chile US$40.4 bn US$8.8 bn Total economic contribution Total economic contribution Payments to Total Profit/(loss) Payments to Payments to Payments to shareholders Social economic before Number of governments suppliers1 employees2 and investors investment2 contribution tax3 employees/ Country US$M US$M US$M US$M US$M US$M US$M contractors4 Australia 12,129 12,857 3,600 11,797 58 40,441 16,508 50,093 Chile 1,474 6,469 814 2 21 8,780 3,875 24,738 Canada 27 802 53 2 5 889 12 2,626 Rest of the world 142 2,003 221 1,623 51 4,040 412 5,754 Total 13,772 22,131 4,688 13,424 135 54,150 20,807 83,211 Equity accounted investments Brazil (Samarco) 9 – – – 1 10 215 –Peru (Antamina) 190 – – – 13 203 451 –Other – – – – 1 1 (72) – Total including equity accounted investments 13,971 22,131 4,688 13,424 150 54,364 21,401 83,211 1 Includes payments to suppliers for operating costs on an accruals basis and payments to suppliers for capital expenditure on a cash basis. 2 Calculated on an accruals basis. 3 Rest of the world includes consolidation adjustments related to intra-group transactions. 4 Does not include employees and contractors that transitioned from the OZ Minerals business via acquisition on 2 May 2023 (1,457 employees at 30 June 2023 and around 4,000 contractors on average during FY2023). These employees and contractors are included in the overall BHP employee reporting from FY2024. BHP Economic Contribution Report 2023 05

1 Our contribution continued How we create and deliver value Exploration and acquisition We seek to add high-quality Development Tier 1 copper and nickel and mining interests through our exploration activities and early-stage entry We strive to achieve the and acquisition options. industry’s best performance in safety, operational excellence, project management and allocation of capital. Process and logistics We process and refine ore, safely manage waste and efficiently and sustainably transport our products to customers. Our strategy We will responsibly manage the most resilient long-term portfolio of assets, in highly attractive commodities, and will grow value through being excellent at operations, discovering and developing resources, acquiring the right assets and options, and capital allocation. Through our differentiated approach to social value, we will be a trusted partner who creates value for all stakeholders. Sales, marketing and procurement We maximise value through our centralised marketing and procurement organisations, commercial expertise, understanding of markets and customer and supplier relationships. Closure and rehabilitation We consider closure and rehabilitation throughout the asset life cycle to help minimise our impact and optimise post-closure value for all. 06 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information The world is on a path of population growth, increased urbanisation and a lower 3 Process and logistics greenhouse gas (GHG) emissions future. BHP is committed to playing our role in building a better world. We seek to How we contribute do so responsibly and sustainably while continuing to create value for our Net profits – corporate taxes paid shareholders and the broader community. Royalties paid from extraction We aim to do this at each step in our value chain. We work in partnership with communities. We provide employment, purchase goods and services, pay Payments to suppliers and contractors taxes, royalties and other payments to governments and make contributions Wages paid to employees (such as donations) to the communities where we operate. Employment and sales taxes, import duties We work to promote integrity and sustainability by following best practices Contributions to communities where we operate and supporting the work of the BHP Foundation to improve the governance of natural resources for the benefit of citizens of resource countries. Once extraction begins, royalties and resource taxes begin to be paid. Employment taxes increase as the operating workforce commences. The way we work provides a competitive advantage for BHP and is vital to Corporate income tax may also begin to be paid, however this is often lower in delivering long-term enduring value. Value is created for our shareholders the early years of an operation as tax losses from the construction phase are and investors, including pension and superannuation funds, through paying offset against income. Over the life of an operation, payments to governments dividends and making other financial returns. We contribute to society more are significant. Community contributions continue through the operating generally as we provide the building blocks essential to modern life for millions life. Payments to shareholders and investors also increase as income from of people around the world. In this way, we strive to align with the interests of operations is generated. As we invest in long-term assets, we also strive to the communities where we operate and to society more broadly. create high-value, long-term job opportunities and build strong relationships 1 Exploration and acquisition with communities, suppliers and contractors. How we contribute 4 Sales, marketing and procurement Payments to suppliers How we contribute Wages paid to employees Payments to suppliers and contractors Permits, licence fees and employment taxes Wages paid to employees We aim to create and protect the value of our portfolio throughthe exploration Corporate, employment and sales taxes, import duties and acquisition of new resources in future-facing commodities.Payments to Sales and Marketing, and Procurement are separate core businesses of BHP, governments during the exploration phase are usually relatively low, reflecting connected under the Commercial function. BHP’s Commercial function seeks the high levels of investment and risk of this work. Permits, icence l fees and to maximise commercial and social value while minimising costsacross the employment taxes make up the majority of our payments to governments. end-to-end supply chain. The function is organised around core activities Contributions to communities include payments to suppliers andcontractors for in our value chain, supported by credit and market risk management and any construction or excavation work and wages to employees (often for highly strategy, planning and integrity activities. skilled and specialist roles, such as geologists, metallurgists and environmental scientists). Where acquisitions occur, our contribution can also include payments We sell and transport our products and obtain the goods and services that to governments, suppliers and contractors and the payment of licence fees. flow into our supply chain. Contributions include payments to suppliers, with a significant amount of spending directed to businesses inthe 2 Development and mining communities where we operate. Sales and Marketing presents a single face to markets across multiple assets, with a view to realising maximum value How we contribute for our products and supporting sustainability initiatives in our downstream Capital expenditure supply chain. Payments to suppliers and contractors 5 Closure and rehabilitation Wages paid to employees How we contribute Employment and sales taxes, import duties Payments to suppliers and contractors Contributions to communities where we operate Corporate taxes paid if alternative revenue streams Development involves construction of facilities, excavation and any supporting from post-mining land use are found infrastructure that is required. This can extend to construction of whole towns, Lower employment and sales taxes including schools, medical facilities and recreation areas. More jobs are created, directly in construction and more broadly through the provision of goods and Land no longer required for operations is rehabilitated. Rehabilitation activities services to the sites and workforce. Contributions to local communities begin are often interwoven with the continuing development of nearbyoperations. to be made. Payments to governments are largely in the form ofindirect taxes Payments to governments will be lower, as will employment and payments (such as sales tax, value added tax, goods and services taxes or excise fees) to suppliers and contractors, but post-mining land uses may generate new on equipment and materials, and employment taxes. revenue streams for BHP and the local community. BHP Economic Contribution Report 2023 07

1 Our contribution continued Social value We are committed to social value, our positive contribution to society. The BHP FutureFit Academy continues to help bolsterAustralia’s skills base Social value is about creating mutual benefit for BHP, our shareholders, and create new career pathways into the mining sector though an accredited Indigenous partners and the broader community. We consider social value and maintenance and production traineeship or a trade apprenticeship. In FY2023, financial value in the decisions we make. the FutureFit Academy trained more than 530 apprentices and trainees, with 227 graduating. For more information refer to Operating and Financial Review We aim to source and promote locally available goods and services as an 6.6 in our Annual Report. important part of our external expenditure to help local communities thrive. We believe we provide significant social value as part of our economic In addition, we continue to make voluntary social investment in local contribution to the communities and countries where we operate. communities to projects that deliver positive economic, socialand environmental outcomes. In FY2023, our voluntary social investment totalled US$149.6 million. Transparency about our contributions helps build trust with ourstakeholders. This investment consisted of direct community development and environmental For more information refer to Our approach to transparency. projects and donations, and equity share to joint venture social investment More information on social investment, including case studies and other programs. Over the past 10 years, our voluntary social investment alone initiatives to support communities where we operate, is available at bhp.com. amounted to US$1.6 billion. Case study: Local Buying Program in Australia Local businesses are vitally important to BHP’s success and to the capacity of regional Australian communities to create and sustain jobs. In FY2023, BHP celebrated a milestone of more than A$1 billion spent Spotlight story with small, local and Indigenous businesses across regional Australia One business that has benefited from our Local Buying Program is since the commencement of our Local Buying Program. The program Minga Milku, a 100 per cent Indigenous-owned business that supplies enables small, local and Indigenous businesses to supply goods and signage and safety equipment. The company, founded by Tjupan and services to BHP operations via an e-marketplace, with reduced payment Yamatji man Jamie Hunt, received a contract in FY2023 to fit out new terms and a local business advisors support network. accommodation rooms at BHP Nickel West’s Mt Keith operation with The Local Buying Program was first established to support local televisions, signage, rugs and bespoke Tjiwarl artwork created by businesses surrounding the BHP Mitsubishi Alliance (BMA) operations Jamie’s sister, Nikita. in Queensland in 2012 in a strategic partnership between BHP and BHP depends on the capability and talent of the many small, local and C-Res. Following the program’s success in Queensland, it was expanded Indigenous businesses that support our operations across Australia. to all of BHP’s Australian operated assets and our Minerals Americas We continue to forge new and deeper partnerships together that we operations located in Chile. Over the past 10 years, more than 1,600 hope will continue to grow for many years to come. small, local and Indigenous businesses have joined the BHP supply chain through more than 67,000 work packages in Australia with an average payment period of seven days. The Local Buying Program is integral to how BHP supports Australia’s economic development, particularly in regional areas and for Indigenous This partnership means a lot to us. communities. The program provides support for jobs, businesses and It’s given me the opportunity to work families in regional communities, and contributes to the longevity and vibrancy of the towns surrounding BHP’s operations. on Country and to support the people around me. I’ve been able to involve family and to really develop as a business and a team.” Jamie Hunt Minga Milku founder 08 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information Case study: Jansen Potash Project Our Jansen Potash Project in Saskatchewan, Canada is expected to become one of the world’s largest and most sustainable potash mines.1 Our Jansen Potash Project in Saskatchewan, Canada, when complete, is anticipated to provide a rich source of potassium for fertiliser to assist with improving agricultural production. The BHP Board approved the C$7.5 billion Jansen Stage 1 project inAugust 2021. Stage 1 is currently under construction and is expected to start producing in late CY2026 and ramp up o t full production in CY2028, with a capacity of up to 4.35 Mt of potash per annum. A feasibility study to explore a Stage 2 is also underway and expected to be completed in FY2024. If approved, Stage 2 would increase capacity of the mine. As BHP’s presence in Canada grows, we are investing in building and maintaining strong relationships through the creation of jobs,contracts with suppliers and contribution to the local community. Jansen Stage 1 provides a significant opportunity for local contractors, including 3,500 jobs during peak construction and approximately 600 permanent jobs once operational. To date, over C$4 billion in contracts have been awarded and the project is expected to contribute C$1.8 billion of direct and indirect contribution to the local GDP in the six years of construction. Jansen’s contribution at a glance in FY2023: C$1.1 bn2 (US$802 m) suppliers over 2,500 employees and contractors Spotlight story In FY2023, we awarded three large contracts for our camp management, site services and raw ore/product handling foundations to Indigenous businesses. The contracts are for 3.5 years and are collectively valued at over C$260 million. They are anticipated to support more than 400 local jobs with over 50 per cent expected to be filled by Indigenous people. Importantly, they will include representation from all six First Nations in the vicinity of the Jansen project, who we have Opportunity Agreements Indigenous and industry with. They also mark an important milestone for the project and honour the aspirations of our First Nations Opportunity Agreements, bringing the partnerships, such as these, total value of contracts awarded to First Nation Opportunity partners to create economic and C$470 million since 2021. To support the work at Jansen, BHP has helped First Nation Opportunity employment opportunities for Agreement holders come together with industry partners. The camp our Nation and its members. management contract was awarded to Wicehtowak Frontec Services, It also allows us to develop a joint venture between ATCO Frontec Ltd and George Gordon Developments Ltd. The joint venture was originally created in 2011 capacity, learn from one as a 50-50 partnership to support the construction of the Jansen another and grow in tandem. Discovery Lodge and has evolved to become a majority Indigenous-owned company. The site services and raw ore/handling foundation More importantly, these types of contracts were awarded to 2Nations Bird – a new partnership between relationships are critical Bird Construction Inc., Beardy’s & Okemasis’ Cree Nation’s Willow Cree Developments General Partner Inc., and Fishing Lake First Nation’s to advance economic Development Corporation, FLFN Ventures. reconciliation, which allows us 2Nations Bird will work closely with subcontractors KDM Constructors, who represent Kawakatoose, Day Star and Muskowekwan Nations; as to develop long-term, meaningful well as George Gordon Developments Ltd, the economic development and sustainable outcomes.” arm of the George Gordon First Nation. As we advance the construction of Jansen Stage 1, we will continue to Chief Ananas look for opportunities to ensure the province and local residents benefit Beardy’s & Okemasis’ Cree Nation from our presence and that we are creating a shared vision for the future. 1 The proposed mine has been designed based on a more sustainable approach with a relatively low GHG emissions footprint and water intensity compared to existing potash mines. 2 Amount is translated at the FY2023 average rate of CAD/USD 0.746. BHP Economic Contribution Report 2023 09

1 Our contribution continued Case study: Western Australia Iron Ore Western Australia Iron Ore (WAIO) is an integrated system of four processing hubs and five mining hubs, connected by more than 1,000 kilometres of rail infrastructure and port facilities in the Pilbara region. Our State agreements continue to deliver significant community and social benefits year-on-year through our ongoing investments in infrastructure and services, many of which are developed and delivered in partnership with the communities where we operate and where our employees live and contribute to local economies. We contributed A$15 million towards theA$61.4 million, state of the art, new Newman Health Campus that officially opened in May 2023.The hospital is designed to serve as a one-stop-shop for patients, with services and facilities including a new emergency department, inpatient beds, emergency and treatment bays, a dedicated medical centre, consultation spaces and a dental clinic. Over the past year, we invested more thanA$44 million in other community projects that benefit Western Australia, including the nationally recognised Thriving Futures partnership with ChildAustralia (to improve childcare services in Newman and Port Hedland) and funding for PuntukurnuAboriginal Medical Service (to employ additional general practitioners, provided vaccination support and other health initiatives to regional and remote communities). In FY2023, we spent more thanA$477 million with local suppliers either directly or through the Local Buying Program in Western Australia. In FY2022, we established Project Rise, a strategic initiativeto facilitate collaboration between BHP, Traditional Owners and Indigenous businesses, to support them with more opportunities. In FY2023, WAIO spent $275.7 million (70 per cent increase from FY2022) with 97 Indigenous businesses, including A$143.9 million with 63 Traditional Owner businesses. Building on the momentum that began in WAIO in FY2022 through Project Rise, we expanded our program to improve engagement with Indigenous businesses across all our operated assets and we are seeking to increase direct procurement spend Spotlight story to over US$400 million by FY2025 globally. In FY2023, we celebrated the award of a historic contract with PMW Industries, a Banjima owned and operated Pilbara Aboriginal Traditional In the past decade, BHP has contributed more than A$19 billion in iron Owner business. The contract is one of the largest Traditional Owner ore royalties to the Western Australian Government. contract awards in WAIO’s history. For more information about WAIO’s contribution refer to the WAIO Since October 2022, PMW Industries has been operating on Banjima Community Development Report available at bhp.com. Country, maintaining a semi-mobile crushing and screening plant at our Mining Area C operation, supported by its new strategic partner, CSI BHP’s contribution at a glance in FY2023: Mining Services. It is a large-scale, long-term scope of work and a job creator – with up to 30 new employment and training opportunities for A$7.7 bn Banjima and other Indigenous people. PMW Industries is already seeing strong results with its new purposely established crushing and screening (US$5.2 bn) corporate income tax1 Indigenous traineeship program, with five trainees soon to graduate, and preparations underway for the next intake. A$10.2 bn2 Valued supplier partners such as PMW Industries are fundamental to BHP’s success. (US$6.9 bn) suppliers A$3.0 bn PMW Industries is very proud to (US$2.0 bn) state royalties and other payments be partnering with BHP to enable to governments more employment and economic over 14,000 empowerment for Traditional Owners employees and contractors and Indigenous people. As a Banjima woman and business owner, I’m also delighted to be creating opportunities for other Indigenous women and young 1 This includes amounts allocated under the tax funding arrangement of the girls to follow their dreams.” BHP Australian tax consolidated group. Refer to the table in Payments made on a project-by-project basis. Paula White, 2 Amount is translated at the FY2023 average rate of AUD/USD 0.673. PMW Industries owner 10 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information Case study: BHP Mitsubishi Alliance The BHP Mitsubishi Alliance (BMA) is a 50:50 joint venture between BHP and Mitsubishi Development and was formed in 2001. BMA is one of Australia’s largest seaborne exporters of metallurgical (steelmaking) coal from its seven Bowen Basin coal mines (Blackwater, Broadmeadow, Caval Ridge, Daunia, Goonyella Riverside, Peak Downs and Saraji) located in Central Queensland, as well as the Hay Point Coal Terminal. BMA makes a significant contribution to Queensland and the Australian economy, and has done so for over half a century. We believe we are successful when we work in partnership with regional communities and where we can, we seek to employ local people and purchase local goods and services through our supply chains. The mining sector is the largest contributor to Queensland’s economy, the largest regional employer and the largest export industry in the state. In the past decade, BMA mining operations have been a major contributor of royalties, paying more than A$16.5 billion to the Queensland Government, with over A$5 billion paid in FY2023. In addition, in FY2023, BMA voluntarily invested more than A$13 million in health, education, Indigenous and environmental projects in Queensland, including: – provision of over A$690,000 to more than 70 local organisations and community groups through our Benefiting My Community small Spotlight story grants program to support grassroots initiatives – establishment of the Childcare Leadership Alliance, to strategically In October 2022, BMA was invited to celebrate Indigenous Business enable and support the provision of high-quality, early childhood and Month in Mackay with a Meet the Buyer/Supplier Networking event. school-aged care in the Isaac Region This annual event was hosted by the Queensland Government – delivery of STEM (Science, Technology, Engineering and Maths) Department of Seniors, Disability Services and Aboriginal and Torres support to 18 schools across the Bowen Basin through our Bowen Strait Islander Partnerships. Approximately 25 Indigenous businesses Basin Bright Minds Project, enabling enhanced learning outcomes attended, along with several members of the BMA Local and Indigenous for over 7,000 students and teachers Procurement Sub-Committee. – continuation of our partnership with CQUniversity to deliver the At the event, our Local Buying Program suppliers Dodd Taylor Group, Chair of Indigenous Engagement and the Chair of Automation and Budby Smith Group and Yarbun Creations shared their experiences, Future Skills roles, which are progressing critical research and including how their businesses are adapting to current markets and engagement in education, future work skills and enhancing areas how they benefit through connections made through BHP’s Local relating to reconciliation in Australia, Indigenous self-determination Buying Program. and empowerment BMA also makes contributions to industry partnerships that support regional communities, including investing A$27.4 million over the past three years in the Queensland Resource Community Infrastructure Fund, For our business, it means extra a partnership between the Queensland Government and the resources industry that seeks to support infrastructure that is in addition to existing scope. We’re now looking after planned State and resource company funded community infrastructure corporate training as well as and where we can, we employ local people and purchase local goods and services through our supply chains. vegetation management and civil For more information about BMA’s contribution to Queensland refer to the works. We’ve got extra staff on, and BHP and BMA’s Community Contribution Report available at bhp.com. we have contracts for the next five BMA’s contribution at a glance in FY2023: years, so we’re diversifying and A$7.9 bn1 growing at an increasing rate.” (US$5.3 bn) suppliers Graham Budby Budby Smith Group Co-CEO A$5.3 bn (US$3.6 bn) state royalties and other payments to governments over 10,000 employees and contractors 1 Amount is translated at the FY2023 average rate of AUD/USD 0.673. BHP Economic Contribution Report 2023 11

1 Our contribution continued Case study: Chile We’ve been contributing to the Chilean economy for more than three decades. BHP operates three copper mines in Chile: Escondida,1 Spence and Cerro Contribution by BHP-operated mines in Chile in FY2023: Colorado located in the northern regions ofAntofagasta and Tarapacá. The corporate headquarters of BHP in Chile is located in Santiago. US$1.5 bn BHP-operated mines have produced around 24 per cent of all Chilean copper over the past 33 years, with an increasing participation sincethe beginning of taxes and other payments to Government operations in 1990. This has been enabled by the capital expenditure of more than US$16 billion in the past decade alone. US$6.4 bn Escondida has produced more than 31 million tonnes (Mt) of copper since suppliers 1990. The asset is the largest copper mine in the world, producing over 1 Mt of copper a year and operating with more than 13,000 employees 3 and contractors. over 24,500 Spence has produced around 2.9 Mt of copper since the beginning of its employees and contractors operation in 2006. It operates with around 7,000 employees andcontractors. Cerro Colorado has produced around 2.4 Mt of copper since the beginning of its operation in 1994.The mine is transitioning to closure at the end 26% of CY2023. of Chilean copper production In Chile, BHP has been a pioneer in the use of desalinated water. The investments in Escondida include more than US$4 billion towards the construction of two desalination plants, which have enabled Escondida to stop the use of fresh water and become 100 per cent supplied by desalinated water, as well as Spence’s new concentrator, which is supplied entirely by a desalination plant operated by a third party. In FY2019, Escondida and Spotlight story Spence invested US$780 million into renewable energy contracts. From June In late 2020, Escondida partnered with a number of Chilean public entities 2023, Escondida and Spence’s electricity needs are supplied entirely by and local government to form Aster, the first startup accelerator in the renewable energy contracts. Antofagasta region. The initiative seeks to develop new technology-In the past five years, BHP-operated mines have spent around US$3.8 billion intensive local businesses that focus on the mining industry and adjacent with local suppliers, with US$1.1 billion of that spent in FY2023. Since 2019, services, such as renewable energy, water resources and industrial logistics. we have actively promoted the development of local small suppliers in Each selected startup is awarded a four-month business training and the regions of Antofagasta and Tarapacá. BHP’s Local Buying Program coaching program and seed capital of around US$30,000. has created long-term business relationships with local small-to-medium Since commencement, 40 startups have joined the program and generated enterprises with over US$100 million spent with more than 350 suppliers sales of more than US$3 million and created more than 50 highly qualified through the program during FY2023. local jobs. The portfolio of Aster is now valued at US$41 million. BHP-operated mines contributed more than US$8.8 billion2 in first category In FY2024, Escondida will provide all financing forAster’s program, which is income tax (corporate income tax) and mining tax in the past decade, expected to create new business opportunities for local startups and enable representing more than 6 per cent of all the total revenues for first category them to join our mining value chain. income tax in the country and almost one-third of the revenuescollected through the specific mining tax in Chile. During the same period, BHP contributed approximately US$2.1 billion in withholding tax onour share of dividends from operations in Chile. 1 BHP operates and owns 57.5 per cent of the Escondida mine, a joint venture with Rio Tinto (30 per cent) and Japan-based JECO Corp (12.5 per cent). 2 The figure includes 100 per cent of Escondida. 3 The figure includes operational, global and regional functions. 12 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information 2 Our approach to tax Our Tax Principles Our Charter and Our Code of Conduct (Our Code) define how we work at Our approach to tax is underpinned by Our Charter and Our Code, and is BHP. Our Charter describes our purpose, values and how we measure our embodied in our Tax Principles. The Risk and Audit Committee of the BHP success. It is the single most important means by which we communicate Board endorsed these principles and in FY2023, we conducted annual who we are, what we do and what we stand for, and is the basis for our assurance that we have adhered to our Tax Principles. decision-making. Supporting Our Charter is Our Code, which brings our values to life so we can make the right choices every day. The six principles set out below govern our global approach to tax: 1. Transparency 2. Corporate citizenship We are transparent about the taxes and royalties we pay We act with integrity when engaging with revenue authorities to to governments because we believe openness allows our support positive and constructive relationships. Where possible, shareholders, employees, contractors, partners, customers and for the purposes of obtaining certainty of our tax positions, we communities to understand the contribution we make and have engage with revenue authorities on a real-time basis regarding a greater ability to assess the integrity of the tax systems in the the application of the tax law and to identify and resolve any countries where we operate. disagreements on a timely basis. 3. Risk management and governance 4. Business rationale We are committed to strong governance. We identify, assess and Our transactions have proper commercial purposes and economic manage tax risks in accordance with our global Risk Framework. rationale. We locate business activities where value is optimally Material risks are reported to the Risk and Audit Committee. created. We seek to have a tax charge that contributes to superior For more information refer to page 16. business performance and delivers long-term shareholder value. Accordingly, we do not engage in aggressive tax planning. 5. Compliance 6. Advocating reform We respect and comply with the laws of the countries where we We support simple, stable and competitive tax rules and the operate. We meet all of our tax compliance obligations on time. principle that the taxing rights of countries should be commensurate Our tax obligations include pricing transactions in our global value with where the economic activity occurs. We engage in the reform chain according to where value is created and economic activity process of international tax rules (including transfer pricing) occurs, in compliance with the OECD guidelines, and based on the and local tax rules in countries where we operate. We do this arm’s length principle. because we believe tax systems should be effective, efficient and competitive, in order to support economic growth, job creation and viable long-term tax contributions. BHP Economic Contribution Report 2023 13

2 Our approach to tax continued Our approach to transparency – B Team Responsible Tax Principles: As a founding member of the B Team Responsible Tax Principles, we disclose details of our approach BHP has a strong commitment to the highest standards of corporate to tax management, including our relationships with tax authorities, governance and transparency. Being open about taxes and royalties we entities located in low-tax jurisdictions, primarily established for historical pay to governments helps build trust with our shareholders, employees, reasons, jurisdictions where we have accepted tax incentives and our customers, the communities where we operate and other stakeholders. approach to advocacy on tax issues. Transparency allows an informed debate on the integrity of tax regimes and – Global Reporting Initiative (GRI) 207: Our Economic Contribution Report the contribution we do and should make in the countries where we operate. 2023 meets the requirements of GRI 207-1 to 3 issued by the Global This commitment is reflected in our support of global transparency Sustainability Standards Board. initiatives. For example, we are a supporting company and represented We also disclose payments to governments connected with our on the Board of the Extractive Industries Transparency Initiative (EITI), extractive activity to meet the Extractive Sector Transparency Measures whose 2019 Standard requires the EITI implementing countries to Act requirements in Canada. In addition, in accordance with the UK develop public Beneficial Ownership Registers. We continue to support requirements under paragraphs 19 and 22 of Schedule 19 of the UK the introduction of public disclosure requirements relating to beneficial Finance Act 2016, we publish Our Tax Strategy on an annual basis. ownership (that is, the ultimate holder of the benefits of ownership of a Our Tax Strategy for the year ended 30 June 2023 is available at bhp.com. company), because disclosure of beneficial ownership is an important We voluntarily disclose additional information, including our total element in making sure assets and income are fully disclosed to relevant direct economic contribution, profit/(loss), number of employees and regulatory bodies, including revenue authorities to promote compliance contractors, effective tax rates in the key countries where we operate and with tax laws. We commend the efforts of other organisations that support reconciliation data. beneficial ownership transparency and companies, including our joint venture partners, contractors and suppliers that publicly disclose their beneficial owners. We support ongoing efforts by governments and GRI 207 multilateral organisations to promote and implement beneficial ownership The GRI is the independent, international organisation that sets the transparency measures globally. standards that represent global best practice for reporting publicly on a BHP continues to make the disclosures on shareholders and entities in range of economic, environmental and social impacts. GRI 207 sets out which we have an interest, in line with laws and regulations and voluntary disclosures related to tax and payments to governments aimed to help commitments, including the beneficial owners of our mining joint ventures promote greater transparency on an organisation’s approach to taxes. that generate material revenue for BHP. For more information on our Key elements of GRI 207 have been integral to our economic approach to beneficial ownership transparency, including our disclosures, and tax transparency disclosures since 2000. It comprises the refer to Operating and Financial Review sections 5 and 6.9 in our Annual following standards: Report 2023 and Ethics and Business Conduct page at bhp.com. – GRI 207-1: Approach to tax We also support initiatives by governments of the countries where we – GRI 207-2: Tax governance, control and risk management operate to publicly disclose the content of our licences or contracts for – GRI 207-3: Stakeholder engagement and management of concerns the development and production of minerals that form the basis of our related to tax payments to governments, as outlined in the EITI Standard. – GRI 207-4: Country-by-country reporting We support mandatory payment disclosure legislation, such as the Reports on Payments to Governments Regulations 2014 (as amended) The requirements of GRI 207-1 to 3 are addressed in this Report. and DTR 4.3A of the Financial Conduct Authority’s Disclosure Guidance In addition to the payments to government data presented in this Report, and Transparency Rules in the United Kingdom, the European Union’s BHP has published its Country-by-country Report for FY2021 (the report Accounting and Transparency Directives (including as they apply in the is available at bhp.com) and will publish its Country-by-country Report for United Kingdom following the UK’s exit from the European Union), where FY2022 in accordance with the requirements of GRI 207-4. GRI 207-4 applicable, and Section 1504 of the Dodd-Frank Wall Street Reform and recognises that country-by-country report information for the time period Consumer Protection Act (Dodd-Frank Act) in the United States. We also covered by the most recent audited consolidated financial statements may support the public disclosure of country-by-country reports containing not be available and therefore permits disclosures of information for the time detailed quantitative data, such as revenue from related and unrelated period covered by the audited consolidated financial statementsimmediately parties, profit/(loss) before tax, effective tax rate and number of employees preceding the most recent one. for each country in which a subsidiary entity is a tax resident. This Report and global tax The future of global tax transparency transparency requirements To be meaningful, information and data should be disclosed that is useful We began our journey of voluntarily disclosing our payments of taxes and to stakeholders and in a format that is accessible, machine-readable and royalties in 2000 when we first disclosed these payments in our annual easy to understand and utilise. Therefore, we support the establishment Sustainability Report. Since then, we have progressively increased of a globally consistent regulatory disclosure framework, including the detail of these annual disclosures meeting global and local tax equivalency provisions between jurisdictions. In addition, we support transparency requirements but also voluntarily disclosing additional alignment between the quantitative data provided to tax authorities to information above these requirements. comply with country-by-country reporting obligations and the data to be This Report complies with a number of tax transparency frameworks: disclosed pursuant to any global standards advocating public country-by-country reporting. The alignment of reporting under these initiatives – UK regulatory obligations: The information on our payments to would create a consistent basis for companies to disclose data, such governments on pages 20 to 25 addresses our reporting obligations as payments to governments, minimise compliance costs and make it under DTR 4.3A of the Financial Conduct Authority’s Disclosure easier for stakeholders to compare information between jurisdictions, Guidance and Transparency Rules, which were introduced to implement sectors and companies. We remain concerned that the number and the payments to governments requirements provided for in the EU variety of local disclosure initiatives introduced in recent years or those Transparency Directive. under development will result in additional and undue complexity. We will continue to engage with governments, regulators and civil society – Australian Voluntary Tax Transparency Code: We have adhered to all organisations to move towards global consistency. of the Best Practice Recommendations and minimum standards for ‘large businesses’ contained in the Post-Implementation Review of the We understand the connection between the disclosures we make about Tax Transparency Code Consultation Paper released by the Australian the taxes and royalties we pay to governments, which enable the public Board of Taxation in February 2019. 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. 14 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information Our contribution to the development Our assessment of the stability of tax regimes is a critical factor in assessing the risks associated with particular projects. of tax policy We support the work undertaken by the OECD to achieve a global solution Tax policy to address the tax challenges of the digitalisation of the economy. For the extractives industry, as the right to extract commodities is inherently and We actively participate in public consultation processes and provide our substantially connected with the country where the commodities are perspective on how best to balance the need for government revenues located, such countries should continue to have the right to tax profits from tax against the need to incentivise ongoing, sustainable investment, associated with those commodities. We continue to contribute to the which in turn benefits communities. development and implementation of a solution that provides for a globally In order to attract investment, tax systems should be internationally competitive tax system that supports economic growth and viable long-competitive and stable. term tax contributions. One of the key factors influencing the international competitiveness of a We engage on tax policy and reform matters in the countries where country’s tax regime is the total effective tax and royalty rate on profits. we operate. We work with governments directly or through industry After returning excess cash to our shareholders in the form of dividends associations to share our views on the wider ramifications that tax or share buy-backs and ensuring our balance sheet is strong, we invest proposals will have on the industry, the regulatory and commercial back into our business and community. We have global competition for environments, our customers and the broader community. We primarily do limited capital across our many investment opportunities around the this through a number of global industry and local associations, including world. When we assess which projects we will invest our capital in, tax the Business Council of Australia, Minerals Council of Australia, Consejo competitiveness is an important consideration. Minero, US Chamber of Commerce and the International Council on Mining and Metals. We make long-term investment decisions. Therefore, economic, political and fiscal factors impact investment decisions and long-term operational strategies that span multiple years. Stable and competitive tax systems are critical factors in determining whether the long-term returns associated with an investment are commensurate with the various risks associated with that investment. BHP Economic Contribution Report 2023 15

2 Our approach to tax continued Our approach to tax governance It advises management on the tax implications of business decisions, transactions and compliance with tax laws, in accordance with the internal and risk management governance standards. Given the size, geographic scope and complexity of our operations and, Our external auditor provides assurance on our financial report (which at times, uncertainty regarding the application of tax laws, risk may arise includes tax disclosures set out in Financial Statements note 6 ‘Income tax in the determination of our tax liabilities. The identification and management expense’ and note 14 ‘Deferred tax balances’ in our Annual Report 2023). of risks are central to achieving our strategic objectives. Risk management, For more information refer to the IndependentAuditor’s Reports in the Annual including for tax, is embedded in all our critical business activities, functions, Report 2023 and this Economic Contribution Report 2023. processes and systems through the application of BHP’s Risk Framework. For information on our Risk Framework refer to Operating and Financial Under our Risk Framework, the Board and senior management, including Review section 8 in our Annual Report 2023. the Executive Leadership Team, provide oversight and monitoring of risk management outcomes. The Risk and Audit Committee assists the Board Low-tax jurisdictions with the oversight of risk management, including tax and royalty matters. In classifying which of our subsidiaries are located in low-tax jurisdictions, The Chief Financial Officer, supported by the Group Tax Officer, is we have applied the EU list of non-cooperative jurisdictions for tax purposes accountable for the management of tax risk. as of February 2023. Countries were assessed against agreed criteria In addition to BHP’s Risk Framework, Tax Principles and Our Tax Strategy, for good governance, consistent with the standards of the EU member we have internal governance standards that set out our approach to tax states. These criteria relate to global tax transparency, fair taxation and risk management, the level of risk the Group seeks to take andescalation implementation of OECD base erosion and profit shifting measures. points and procedures. Matters are considered for escalation based on The EU has published a list of ‘non-cooperative’ jurisdictions and a ‘watch a number of elements, including the quantum at risk, level of technical list’ of jurisdictions that have committed to address deficiencies in their uncertainty and change of law risk. BHP’s Tax function is also subject to tax governance and reviews the lists at least yearly. regular internal reviews and audits to provide assurance over compliance We have three subsidiaries in countries on the EU’s non-cooperative list with these standards. and one subsidiary on the ‘watch list’.All of these subsidiaries are subject Our Tax function is responsible for the execution of BHP’s Tax Principles, Our to the controlled foreign company tax rules ofAustralia. Details of each of Tax Strategy and management of tax risk in accordance with the these subsidiaries, including FY2023 profits/(losses), are included in the Risk Framework. tables below. Companies in ‘non-cooperative’ countries Incorporation Profit/(loss) before tax Income subject to tax in Name Jurisdiction Year US$M another country Nature of activities BHP Billiton UK Holdings Limited1 British Virgin Islands 2004 (435) UK2 Holding company BHP Billiton UK Investments Limited1 British Virgin Islands 2004 (435) UK2 Holding company Marcona International, S.A.3 Panama 1953 – – Holding company (legacy) Companies in ‘watch list’ countries Incorporation Profit/(loss) before tax Income subject to tax in Name Jurisdiction Year US$M another country Nature of activities BHP Shared Services Malaysia Sdn. Bhd Malaysia 2008 3 – Group Business Services 1 The incorporation of these holding companies in the British Virgin Islands at that time provided greater flexibility in relation to the payment of distributions for corporation law purposes. 2 These companies are tax residents in the United Kingdom. All their worldwide income is subject to tax in the United Kingdom at the normal corporate tax rate as the income is earned (not when it is repatriated). 3 Legacy holding company that joined the Group through historical acquisition. Tax incentives This is one of several incentives that are legislated and opento taxpayers in Singapore if they can demonstrate significant contribution to the economy and We have been granted tax incentives in some countries where we operate. meet the ongoing quantitative and qualitative criteria set by the Singaporean Where tax incentives are legislated and open to all qualifyingtaxpayers, Government. Our profits from the sales and marketing activities in Singapore we will accept them. were approximately US$661 million. The criteria that apply to such incentives generally include asignificant In the Philippines, we maintain a registration with the Board of Investment that contribution to the local economy through a range of qualitative and grants certain fiscal and non-fiscal incentives, including a concessional tax rate quantitative measures, such as local employment, investment and of 5 per cent. This registration was transferred from the Philippine Economic ongoing expenditures. Zone Authority to the Board of Investment on 27 December 2022. In FY2023, In Singapore, we were granted an incentive exempting us from paying our profits from the operation of our Global Business Services function in the income tax on profit from qualifying shipping operations (total profits from our Philippines were approximately US$0.3 million. shipping business were approximately US$61 million in FY2023) until 30 June We have entered into foreign investment agreements offered by the 2031 under the Maritime Sector Incentive –Approved International Shipping Chilean Government, which have been in place for a number of years. Enterprise status. These agreements provide foreign investors with various rights over their Also, we were awarded a development and expansion incentive under the capital investments that give them certainty on project investments in Chile for International Headquarters Award under the Economic Expansion Incentives a period of time, including certainty on the level of taxes levied and access to (Relief from Income Tax) Act (Chapter 86), for our activities relating to sales local exchange markets for the movement of capital. and marketing in Singapore. During the incentive period and subject to In Brazil, the entity that we acquired as part of BHP’s acquisition of OZ compliance with the terms and conditions of the incentive, qualifying income Minerals has entered into the Superintendency of Development of the Amazon earned will be subject to a concessionary rate of 5 per cent. (SUDAM) program with the Brazilian Government. This program provides an opportunity to reinvest part of the tax liability in the operations subject to the Government’s approval, and grants certain fiscal incentives. 16 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information Our approach to compliance Location Our Sales and Marketing business offices are located close to our We respect and comply with the laws of the countries where we operate customers in our key markets. in accordance with our Tax Principles. We strive for full and timely tax As Asia accounts for 89.6 per cent of our revenue, our global minerals compliance. Our tax obligations include pricing transactions in our global Sales and Marketing business is headquartered in Singapore. Our Sales value chain according to where value is created and economic activity and Marketing business has approximately 260 employees and occurs, in compliance with the OECD guidelines based on the arm’s contractors globally, with 90 located in Singapore. Other smaller offices length principle. are strategically located around the world. Singapore is the Asian centre Intra-group transactions for global commodities trading and is home to the vast majority of the world’s largest commodity trading companies. Singapore is a world leader We disclose our material transactions through the lodgement of our in logistics capability and provides a base for world-class connectivity tax returns and other disclosures to revenue authorities. For example, with an effective transportation network. It also provides a stable and in Australia we comply with a number of country-by-country reporting transparent regulatory framework that supports trade and investment. obligations, including lodging a local file, master file and a country-by-Singapore’s high living standards attract highly qualified people and it has country report with the Australian Taxation Office (ATO) in accordance a large pool of commodities trading talent, providing a highly skilled and with Australian tax laws (and consistent with the OECD’s country-by-diverse workforce. country reporting requirements). This information provides tax authorities with details of how we operate our business and conduct our tax affairs In addition to our Sales and Marketing business, we have teams in around the world and includes details on various entities’ international Maritime and Supply Chain Excellence, Technology, Finance, External related party dealings. Affairs and Human Resources based in Singapore to support our activities in the region. Consistent with our commitment to transparency, we have voluntarily included in this Report information about material transactions between Profits companies in the BHP Group. We outline below the top four dealings Our Sales and Marketing business in Singapore earns a margin on (by quantum) between our Australian business and non-Australian its sales in line with the risks and activities undertaken and the value related parties. added. In FY2023, our Sales and Marketing business made profits of Sales and Marketing business approximately US$661 million on global commodities sales, representing Sales and Marketing is a core business of BHP. It is the link between approximately 3.9 per cent of the FY2023 profits from our Australian BHP’s global operations and our global customers. Our Sales and operations (US$17.2 billion) and approximately 3.1 per cent of the FY2023 Marketing business adds value to BHP and the countries where we profits from our global operations (US$21.4 billion). operate by striving to ensure we receive the maximum price for our Tax commodities. It aims to achieve this by finding the best markets for our In FY2023, the profits (of approximately US$661 million) of our Sales and commodities, liaising closely with our customers on their specific product Marketing business were subject to corporate income tax at a reduced rate requirements and coordinating logistics to deliver the commodities to of 5 per cent under a tax incentive that the Singaporean Government has our customers. For export sales from Australia, our Sales and Marketing granted BHP (refer to the Tax incentives section). business typically buys the commodities from our Australian production All FY2023 profits made by our Sales and Marketing business from the assets, arranges the freight and other logistics and sells the commodities sale of our Australian commodities acquired from entities controlled by to its customers. In some instances, it will provide services to the BHP are taxed in Australia at the normal corporate tax rate of 30 per cent production asset and act as its agent. under the Australian controlled foreign company rules. BHP Economic Contribution Report 2023 17

2 Our approach to tax continued Financing Insurance premiums BHP obtains funding from a number of external sources. For example, BHP has a captive insurance company incorporated in Guernsey (Stein designated Treasury companies obtain debt funding from the external Insurance Company Limited), which provides insurance to our global markets and our Sales and Marketing business and assets receive the portfolio of operated assets and our Sales and Marketing business. proceeds from the sale of our products to customers. These funds may be The risks insured are primarily property-related. We choose to self-insure deployed in different ways, including capital and operating expenditure or these risks because it makes economic sense to do so. The insurance returns to our shareholders. We aim to achieve efficient and effective cash company is located in Guernsey because of the expertise available, lower flow management and concentrate our excess cash reserves through loans capital requirements and strong regulatory rules compared with other and deposits between BHP entities. These transactions usually happen in jurisdictions. Our assets and Sales and Marketing business pay annual the same jurisdiction, but can cross multiple jurisdictions. premiums to the insurance company and receive insurance monies for insured losses suffered. Premiums are priced in accordance with the We are transparent with our tax authorities about our funding arm’s length principle as set out in the OECD guidelines. arrangements. As at 30 June 2023, we have no disputes with any tax authorities in relation to the Group’s financing arrangements. The profits of Stein Insurance Company Limited vary significantly year-on-year depending on the value of insured events that occur. Administration and technology In FY2023, Stein’s profits were subject to the Australian controlled BHP is a globally integrated group, with people frequently working together foreign company rules. across teams and geographies. For example, we have globalised functions, such as External Affairs, Finance, Human Resources and Technology that provide support to our assets and our Sales andMarketing business. We also have regional functions that provide localised support to our assets on exploration, health, safety, environment, projects, engineering and integrated operations. Typically, a fee is charged for services that are provided across different entities and/or jurisdictions within the BHP Group. For example, when our Group functions in Australia provide support to our assets, the assets are charged a service fee. Our key jurisdictions that charge these service fees are Australia, Singapore, the Philippines, Canada, Malaysia, Chile, United States and United Kingdom. 18 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information Our approach to stakeholder The tax authorities conduct assurance on our tax affairs in a number of jurisdictions around the world. As part of these programs, we keep the engagement tax authorities updated on our business and help them develop a deeper understanding of our business through regular dialogue. As a global company, we interact with a range of stakeholders. Our methods, frequency of engaging with and approach to listening to Our risk rating in Australia reflects our size and complexity, our stakeholders are diverse and we use a range of formal and informal balanced approach to tax in particular, by not engaging in aggressive communication and engagement channels to understand the views of tax planning, and our openness and transparency in our dealings with our stakeholders. revenue authorities. We work openly, transparently and constructively with tax authorities and BHP is currently part of the ATO’s ‘justified trust’ program. Under this regularly engage with them as part of regular assurance programs and program, the ATO is seeking to obtain greater assurance that large consultation on tax administration matters. We place great importance on corporates are paying the ‘right’ amount of tax in accordance with tax laws. having effective relationships with tax authorities. Positive and transparent In FY2023, the ATO issued a Tax Assurance Report to BHP for FY2021 engagement with tax authorities that leads to timely and accurate payment and BHP maintained an overall provisional high level of assurance. of taxes and royalties assists the societies where we operate to provide Tax agreements valuable public services and infrastructure for the benefit of the broader As part of our commitment to corporate citizenship, we may enter into community and economy. agreements with revenue authorities about the amount of tax we should We also engage with a broader group of stakeholders on tax policy matters pay on our activities, in particular, on the pricing of intra-group transactions. through our participation in global industry and local associations. We seek This gives us greater certainty about our future tax payments and reduces to provide practical, measured and constructive comments to help meet the risk of tax disputes with tax authorities. objectives of new tax initiatives. We believe more informed, effective and We also entered into an agreement with the ATO in November 2018 in enduring outcomes are achieved where governments openly consult with relation to the Australian tax treatment of our Sales and Marketing business stakeholders. We work with governments directly or through industry as part of the resolution of the long-standing transfer pricing dispute with associations to provide our perspective on the broader implications of new the ATO. tax proposals. We communicate, engage with and capture the concerns of external Tax disputes stakeholders via our Annual General Meetings, Group publications Given the size, geographic scope and complexity of our operations (including our Annual Report and other topic-specific reports), our website and, at times, uncertainty regarding the application of tax laws, we have and social media platforms, releases to the market and media, analyst occasional disagreements with tax authorities over the amount of taxes briefings, speeches and interviews with senior executives and investor to be paid. In this respect, BHP is no different from other large and round tables. We regularly engage with civil society, including think tanks complex corporations. and non-government organisations, and participate in public events to Where possible, we engage with revenue authorities on a real-time basis communicate BHP’s approach to tax and transparency and seek feedback regarding the application of the tax law and to identify and resolve any from leading organisations in this space. This enables us to stay aligned disagreements on a timely basis. with evolving expectations around tax and transparency. Reconciling this Report with ATO transparency data Our approach to stakeholder engagement is described in our Annual We prepare a reconciliation of our taxes paid in Australia to the data Report 2023 (Operating and Financial Review 6.9) and Ethics and published by the ATO each year under Australian mandatory corporate tax business conduct at bhp.com. Information on tax matters is provided transparency measures. This reconciliation is published on our website in this Report and in Our Tax Strategy. when the ATO publishes its data. The latest data published by the ATO Tax authority relationships relates to FY2021. The reconciliation of our Australian taxes paid to this data is available at bhp.com. As part of our commitment to corporate citizenship, we seek tomaintain positive and constructive relationships with revenue authorities. We proactively engage with these authorities to discuss potential issues and endeavour to, where possible, resolve any disagreements on a timely basis. BHP Economic Contribution Report 2023 19

3 Our payments Our payments to governments BHP has prepared this information in accordance with our UK regulatory obligations under DTR 4.3A of the Financial Conduct Authority’s Disclosure Guidance and Transparency Rules. 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. Corporate Royalty-related Total US$M income tax income tax taxes paid Total payments to governments 9,067.5 250.9 9,318.4 Australia 7,729.1 – 7,729.1 Australian Taxation Office 7,729.1 – 7,729.1 Central Highlands Regional Council – – –City of Kalgoorlie-Boulder – – –City of Rockingham – – –Coal Mining Industry Long Service – – –Isaac Regional Council (Queensland) – – –Mackay Regional Council (Queensland) – – –Municipal Council of Roxby Downs (South Australia) – – –Muswellbrook Shire Council (New South Wales) – – –Shire of Ashburton (Western Australia) – – –Shire of Dundas (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) – – –Other Australian Governments – – – Brazil 0.1 – 0.1 Federal Tax Revenue Ministry 0.1 – 0.1 National Mining Agency – – – Canada 11.9 – 11.9 Canada Revenue Agency 11.9 – 11.9 Finances Quebec – – –Government of Saskatchewan – – –Ministry of Finance – Ontario – – –Rural Municipality of Leroy (Saskatchewan) – – –Rural Municipality of Prairie Rose (Saskatchewan) – – –Government of British Columbia – – –Other Canadian Governments – – – Chile1 1,195.3 250.9 1,446.2 Servicio De Impuestos Internos 1,195.3 250.9 1,446.2 China 3.1 – 3.1 China Tax Bureau 3.1 – 3.1 India 0.7 – 0.7 Income Tax Department 0.7 – 0.7 Japan 0.4 – 0.4 National Tax Agency 0.4 – 0.4 20 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information Our payments to governments over the past five years Our payments Group profit before tax Global to governments excluding exceptional items Other US$m US$m Royalties 18,000 48,000 Total taxes paid Australia Other 15,000 40,000 Royalties Total taxes paid 12,000 32,000 Group profit before tax 9,000 24,000 excluding exceptional items 6,000 16,000 3,000 8,000 0 0 FY2019 FY2020 FY2021 FY2022 FY2023 Payments for Total payments infrastructure as defined by the Other Total payments Royalties Fees improvements UK Requirements payments to governments 4,014.2 38.7 41.8 13,413.1 358.8 13,771.9 4,013.8 23.8 40.1 11,806.8 322.0 12,128.8 – – – 7,729.1 29.4 7,758.5 – – – – 3.3 3.3 – – – – 0.2 0.2 – – – – 0.1 0.1 – – – – 16.9 16.9 – – – – 6.9 6.9 – – – – 0.5 0.5 – – – – 1.0 1.0 – – 0.1 0.1 3.7 3.8 – – – – 0.6 0.6 – – – – 0.1 0.1 – – – – 4.9 4.9 – – – – 0.9 0.9 – – – – 1.2 1.2 303.6 1.9 – 305.5 7.1 312.6 1,755.9 1.5 3.0 1,760.4 70.0 1,830.4 98.4 2.1 – 100.5 29.7 130.2 – – – – (7.6) (7.6) 1,855.9 17.6 37.0 1,910.5 134.6 2,045.0 – – – – 17.0 17.0 – 0.7 – 0.7 1.5 2.2 0.4 – – 0.5 2.6 3.1 – – – 0.1 2.6 2.7 0.4 – – 0.4 – 0.4 – 8.6 1.1 21.6 5.2 26.8 – – – 11.9 1.8 13.7 – – 0.1 0.1 0.1 0.2 – 8.6 – 8.6 0.1 8.7 – – – – 0.1 0.1 – – 0.2 0.2 3.0 3.2 – – 0.2 0.2 0.1 0.3 – – 0.6 0.6 – 0.6 – – – – – – – 5.4 – 1,451.6 22.0 1,473.6 – 5.4 – 1,451.6 22.0 1,473.6 – – – 3.1 – 3.1 – – – 3.1 – 3.1 – – – 0.7 – 0.7 – – – 0.7 – 0.7 – – – 0.4 – 0.4 – – – 0.4 – 0.4 BHP Economic Contribution Report 2023 21

3 Our payments continued Payments made by country and level of government continued Corporate Royalty-related Total US$M income tax income tax taxes paid Malaysia 1.3 – 1.3 Inland Revenue Board 1.3 – 1.3 Netherlands 0.9 – 0.9 Tax and Customs Administration 0.9 – 0.9 Peru 16.4 – 16.4 National Superintendency of Customs And Tax Administration 16.4 – 16.4 Republica Del Peru – – – Philippines 0.7 – 0.7 Bureau of Internal Revenue 0.5 – 0.5 Government of Philippines 0.2 – 0.2 Singapore 92.2 – 92.2 Inland Revenue Authority of Singapore 92.2 – 92.2 Switzerland 0.2 – 0.2 Canton of Zug 0.2 – 0.2 United Kingdom 5.3 – 5.3 City of Westminster – – –HM Revenue & Customs 5.3 – 5.3 United States of America 9.9 – 9.9 Arizona Department of Revenue – – –Arizona State Land Department – – –U.S. Department of The Treasury 9.8 – 9.8 U.S. Nuclear Regulatory Commission – – –Utah State Tax Commission – – –State of New Mexico 0.1 – 0.1 Bureau of Land Management – – –Pinal County – – –Other US Governments – – – Figures are rounded to the nearest decimal point. 1 Income and mining taxes are paid in Chile on a calendar year basis. However, for the purpose of this Report, taxes paid are included for BHP’s financial year (1 July 2022 to 30 June 2023). For reference, income tax and specific tax on mining activities paid by Escondida and Pampa Norte for CY2022 amount to US$1,265.0 million (Escondida) and US$1.3 million (Pampa Norte). 22 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information Payments for Total payments infrastructure as defined by the Other Total payments Royalties Fees improvements UK Requirements payments to governments – – – 1.3 – 1.3 – – – 1.3 – 1.3 – – – 0.9 – 0.9 – – – 0.9 – 0.9 – – – 16.4 0.2 16.6 – – – 16.4 – 16.4 – – – – 0.2 0.2 – – – 0.7 0.4 1.1 – – – 0.5 0.4 0.9 – – – 0.2 – 0.2 – – – 92.2 – 92.2 – – – 92.2 – 92.2 – – – 0.2 – 0.2 – – – 0.2 – 0.2 – – – 5.3 3.9 9.2 – – – – 0.9 0.9 – – – 5.3 3.0 8.3 – 0.9 0.6 11.4 2.5 13.9 – 0.1 – 0.1 – 0.1 – – – – 2.0 2.0 – – – 9.8 – 9.8 – 0.3 – 0.3 – 0.3 – 0.2 – 0.2 – 0.2 – 0.1 – 0.2 – 0.2 – 0.1 – 0.1 – 0.1 – – – – 0.4 0.4 – 0.1 0.6 0.7 0.1 0.8 BHP Economic Contribution Report 2023 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. Corporate Royalty-related Total US$M income tax income tax taxes paid Total payments to governments 9,067.5 250.9 9,318.4 Minerals Americas 1,207.6 250.9 1,458.5 Escondida 1,305.7 249.7 1,555.4 Other Copper 2.7 – 2.7 Pampa Norte (118.3) 1.2 (117.1) Potash Canada – – –BHP Billiton Brasil Ltda1 (0.3) – (0.3) RAL Cayman Inc2 17.8 – 17.8 Minerals Australia 7,670.1 – 7,670.1 New South Wales Energy Coal 590.8 – 590.8 Nickel West 99.3 – 99.3 Copper South Australia 78.3 – 78.3 Other Coal (0.8) – (0.8) BHP Mitsubishi Alliance3 1,734.4 – 1,734.4 Western Australia Iron Ore 5,168.1 – 5,168.1 Group and Unallocated 189.8 – 189.8 Corporate4 190.7 – 190.7 Commercial 18.3 – 18.3 Other (19.2) – (19.2) Figures are rounded to the nearest decimal point. 1 Holding company of Samarco equity accounted investment. 2 Holding company of Antamina equity accounted investment. 3 Royalties, fees and other payments made by BM Alliance Coal Operations Pty Limited have been included in total payments to the extent of BHP’s ownership of the operating entity, being 50 per cent. 4 The corporate income tax amount predominantly reflects the allocation of the Australian corporate income tax liability among members of the Australian tax consolidated group. For more information refer to Basis of Report preparation section. 24 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information Payments for Total payments infrastructure as defined by the Other Total payments Royalties Fees improvements UK Requirements payments to governments 4,014.2 38.7 41.8 13,413.1 358.8 13,771.9 0.4 14.2 1.0 1,474.1 29.4 1,503.5 – 0.8 – 1,556.2 19.9 1,576.1 0.4 1.1 – 4.2 1.0 5.2 – 3.7 – (113.4) 1.2 (112.2) – 8.6 1.0 9.6 4.7 14.3 – – – (0.3) 2.6 2.3 – – – 17.8 – 17.8 4,013.8 23.5 40.1 11,747.5 319.4 12,066.9 303.6 1.9 0.1 896.4 14.1 910.5 34.2 3.6 – 137.1 28.2 165.3 98.4 2.1 – 178.8 31.3 210.1 – – – (0.8) 28.7 27.9 1,755.9 1.5 3.0 3,494.8 82.1 3,576.9 1,821.7 14.4 37.0 7,041.2 135.0 7,176.2 – 1.0 0.7 191.5 10.0 201.5 – – – 190.7 9.0 199.7 – – – 18.3 – 18.3 – 1.0 0.7 (17.5) 1.0 (16.5) BHP Economic Contribution Report 2023 25

4 Additional information Tax and our FY2023 Financial Statements Below are some commonly asked questions to assist with better understanding this Report and its link to our Financial Statements. Tax expense How do the numbers reported here reconcile to the accounting Why is the tax expense in your Financial Statements different to profit, tax expense and tax payable in your financial report? the amount of tax paid you disclose in this Report? The income tax and royalty-related income tax paid reported in this The numbers are different because they are calculated at different times Report is included in the Consolidated Cash Flow Statement in Financial for different purposes. Statements 1.4 in our Annual Report 2023, presented as net income tax The income tax expense recorded in our Financial Statements reflects and royalty-related tax refunded of US$232 million and net income tax and the impact on our financial position at the end of the financial year. It is royalty-related tax paid of US$9,552 million. These also reconcile to the designed to give shareholders an indication of the amount of tax the Group tax expense, presented on an accrual basis, in Financial Statements note expects to pay for the activities undertaken during that financial year, so 6 ‘Income tax expense’ and deferred tax expense arising from differences they can assess the impact tax may have on the financial position of the between accounting and tax treatments as shown in Financial Statements Group. For a number of reasons, this number does not represent the actual note 14 ‘Deferred tax balances’ in our Annual Report 2023. cash tax paid during that financial year. For example, cash tax paid during Set out in the table on the next page is a reconciliation of accounting that financial year may include payments or refunds relating to activities profit to income tax expense and current tax payable for the year ended for a prior financial year, but may exclude final payments or refunds that June 2023. relate to activities for that financial year but which occur after the end of the financial year. Additionally, the reporting of revenues or expenses in our Financial Statements may be different to their impact on taxable income reported in tax returns. For example, a piece of equipment may be depreciated for accounting purposes over a certain number of years, but be deductible for tax purposes over a different period (whether shorter or longer). These differences are commonly known as ‘deferred tax’. Reconciliation of taxes paid to tax expense US$m 9,320 (2,856) 9,000 387 7,077 171 55 6,690 6,000 3,000 0 Corporate income tax Tax payments from Tax payments in Other Current tax Deferred tax Total tax that & royalty have- related been paid tax were prior periods made in that FY2023 respect that will of be FY2023 made in expense arising differences from (current expense and and on a received cash basis in FY2023 (Opening income tax subsequent periods accounting between tax deferred expense) & royalty-related (Closing income tax tax payable) & royalty-related and tax treatments tax payable) 26 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information Rest of US$M Global Australia Chile the world1 Profit before tax 21,401 16,508 3,875 1,018 Tax on profit at Australian prima facie tax rate of 30 per cent 6,420 4,952 1,162 306 Derecognition of deferred tax asset and current year tax losses 526 4 53 469 Controlled foreign company taxation in Australia 256 256 – –Tax on remitted and unremitted foreign earnings 137 – – 137 Foreign exchange adjustments 94 90 – 4 Amounts (over)/under provided in prior years (18) (5) – (13) Tax effect of profit/(loss) from equity accounted investments, related impairments and expenses (37) 1 – (38) Recognition of previously unrecognised tax assets (109) – (10) (99) Impact of tax rates applicable outside of Australia (814) – (111) (703) Other 236 114 7 115 Income tax expense 6,691 5,412 1,101 178 Royalty-related taxation (net of income tax benefit) 386 – 386 – Total tax expense 7,077 5,412 1,487 178 Deferred tax expense – Depreciation 452 41 301 110 – Exploration expenditure (2) – – (2) – Employee benefits (94) (80) (10) (4) – Closure and rehabilitation (296) (177) (79) (40) – Other provisions 4 5 (8) 7 – Deferred charges 85 24 37 24 – Deferred income 37 1 – 36 – Investments, including foreign tax credits (54) – – (54) – Foreign exchange gains and losses 42 55 (1) (12) – Tax losses 37 – 95 (58) – Lease liability (83) (11) (32) (40) – Other 259 135 109 15 Total deferred tax expenses 387 (7) 412 (18) Current income tax expense 6,690 5,419 1,075 196 Opening income tax & royalty-related tax payable 2,856 2,574 202 80 Current income tax expense 6,690 5,419 1,075 196 Corporate income tax & royalty-related taxes paid and received in FY2023 (9,320) (7,753) (1,450) (117) Other (55) (47) 119 (127) Closing income tax & royalty-related tax payable 171 193 (54) 32 1 Includes consolidation adjustments related to intra-group transactions. BHP Economic Contribution Report 2023 27

4 Additional information continued Effective tax rate What is your effective tax rate, calculated in accordance What is your effective tax rate and how is it calculated? with the requirements of the Australian Voluntary Tax Transparency Code? The effective tax rate is the amount of tax expense attributable to a year as a proportion of profit before tax. We provide our adjusted effective The Tax Transparency Code (TTC) effective tax rate is calculated as the tax rate, which is calculated as total income tax expense divided by adjusted effective tax rate, excluding the impact of specific tax on mining accounting profit, excluding the influence of exchange rate movements activities in Chile. and exceptional items. Global Australia The adjusted effective tax rate is a measure based on the Group’s % % underlying earnings and therefore removes the impact of one-off TTC effective tax rate 29.1 32.1 transactions. For more information on the exceptional items excluded from the adjusted effective tax rate calculation refer to Financial Statements What is your effective tax rate as disclosed in the Annual note 3 ‘Exceptional items’ in our Annual Report 2023. Report? Outcomes for FY2023 for our key jurisdictions for these effective tax rate We report our adjusted effective tax rate in our Annual Report, which measures are shown below. excludes the impact of exchange rate movements and exceptional items. Global Australia Chile We believe this gives a clearer view of our ongoing contribution and how it % % % changes over time. Adjusted effective tax rate 30.9 32.1 31.1 Our global adjusted effective tax rate in FY2023 was 30.9 per cent. It is Adjusted effective tax rate including reconciled to the statutory effective tax rate shown below. withholding tax1 and royalties2 41.3 44.9 31.7 1 Includes withholding taxes paid by BHP to the Chilean Government on dividends Profit before tax Income tax expense paid by Chilean companies. These withholding taxes are not reflected in the Chile US$M US$M % adjusted effective tax rate. Statutory effective tax rate 21,401 (7,077) 33.1 2 Includes royalties expense. Adjusted for: Exchange rate movements – 94 Why is your effective tax rate not the same as the corporate Exceptional items1 340 266 tax rate? Adjusted effective tax rate 21,741 (6,717) 30.9 1 Refer to Financial Statements note 3 ‘Exceptional items’ in our Annual The tax rate (from which the effective tax rate is derived) is different in Report 2023. each country where we operate. That tax rate applies to the taxable profits derived in that country and any deductions, allowances, incentives or other adjustments unique to that country. As a result, our global effective tax rate will not be the same as the corporate tax rate in any particular country. Our effective tax rate over the past five years 50 Adjusted ETR including royalties 44.7% Adjusted ETR 45 42.2% 40.7% 41.3% 40 38.9% 35 36.0% 32.1% 34.1% 30.9% 33.2% 30 25 FY2019 FY2020 FY2021 FY2022 FY2023 28 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information Basis of Report preparation Fees Payments to governments in the form of fees typically levied on the initial The Report is prepared from data recorded in our financial systems, being the or ongoing right to use a geographical area for exploration, development same data and financial systems used to prepare our Financial Statements. and/or production. This includes licence fees, rental fees, entry fees and In preparing the Report, we have followed the draft guidance material produced other payments for licences and/or concessions. by the Australian Accounting Standards Board. The ‘Total payments as defined by the UK Requirements’ included in pages 20 Payments for infrastructure improvements to 25 have been prepared in accordance with the requirements of DTR 4.3A Payments to governments for the construction of public infrastructure, of the Financial Conduct Authority’s Disclosure Guidance and Transparency such as roads, bridges and port facilities. Rules and, where required by DTR 4.3A, the UK Regulations (the ‘UK Requirements’). There were no dividend payments, taxes levied on production, Other payments production entitlements or signature, discovery and production bonuses Payments to governments under other legislated tax rules, such as payroll paid to governments in the year ended 30 June 2023 for the purposes of the tax, fringe benefits tax, excise duties, property tax, land tax and other UK Requirements. payments related to government environmental policy. These payments are not required to be disclosed by the UK Requirements. Taxes, royalties and other payments to governments are presented in this Report on a cash paid and cash received basis for the year ended 30 June 2023. Excluded amounts For our controlled assets, amounts included in our total payments to The following are not included in total payments to governments: governments are 100 per cent of the assets’ payments to governments. For our non operated and Taxes collected—operated joint ventures, amounts included in our payments to governments are 100 per cent of the amounts paid by BHP and, in the case Tax payments made to governments on behalf of our employees. of BMA, 50 per cent of payments made by the operating entity for BMA in which Indirect taxes BHP has a 50 per cent ownership. For our investments in joint ventures and Tax payments made to or received from governments in the nature associates that are equity accounted by BHP, no amounts have been included of sales tax, value added tax and goods and services tax. in our total payments to governments as BHP is not the operator and does not make payments on behalf of the asset. For information purposes, the BHP Penalties and interest share of the payments made by our significant equity accounted nvestments i Payments to governments resulting from the imposition of penalties, have been shown on page 5 even though no amounts have been included in fees or interest. our total payments to governments. Other Where an acquisition is completed in the year, or a company is newly Certain payments, whether made as a single payment or as a series consolidated in the year, the numbers relating to that business are included from of related payments below US$100,000 (being a lower amount than the the date of acquisition. Where a disposal has been completed in the year, the Ł86,000 threshold set out in both DTR 4.3A and the UK Regulations). numbers relating to that disposal have been included up to the point of disposal. Projects For example, this Report includes taxes, royalties and other payments made to made on a project governments, contribution to suppliers and employee wages and benefits of the Payments -by-project basis (refer to Payments made OZ Minerals business that was acquired on 2 May 2023. on a project-by-project basis section of this Report) represent payments Taxes, royalties and other payments to governments, net of refunds, are by an entity when not specifically attributable to a project. collectively referred to in this Report as ‘total payments to governments’ and Payments in relation to our Corporate and Commercial functions have include the following payment categories: been included in the total payments to governments as defined by the UK Requirements. The payments are not attributable to specific projects and Corporate income taxes reflect functional support for the Group that, in FY2023, consisted entirely of Payments to governments based on taxable profits under legislated projects that undertook relevant activities as defined by the UK Requirements. income tax rules. This also includes payments made to revenue The Payments made on a project-by-project basis section presents authorities in respect of disputed claims and withholding taxes. corporate income tax amounts for each project/entity taking into For the purposes of allocating corporate income taxes to particular account the effects of tax consolidation in Australia. These include: countries in the Payments made by country and level of government – losses from one entity can be offset against taxable income section of this Report, withholding taxes are allocated to the country of another entity within the same tax consolidated group to which the withholding taxes are remitted. For example, Chilean – only the head entity of a tax consolidated group is liable to make withholding taxes paid to the Chilean Government are allocated to Chile. corporate income tax payments to the ATO Royalty-related income taxes – typically, corporate tax groups allocate the aggregate corporate income Payments to governments in relation to profits from the extraction of natural tax payments made by the head entity to the ATO among entities within resources, including specific tax on mining activities in Chile. This also includes the Australian tax consolidated group. payments to revenue authorities in respect of disputed claims. Royalty-related Reporting currency income taxes are included within total tax expense in the Consolidated Income All payments to governments on pages 20 to 25 have been reported in Statement in Financial Statements 1.1 in our Annual Report 2023. US dollars. Payments denominated in currencies other than US dollars Royalties are translated for this Report at the exchange rate at the date of the Payments to governments in relation to revenue or production generated payment unless stated otherwise. under licence agreements. This also includes payments to revenue authorities in respect of disputed claims. Royalties are presented as expenses, not income tax, in the Consolidated Income Statement in Financial Statements 1.1 in our Annual Report 2023. Royalty-related income taxes are excluded from royalties. BHP Economic Contribution Report 2023 29

4 Additional information continued Glossary Profit before tax Profit before tax when presented by country is adjusted Adjusted effective tax rate for intercompany dividends. Total tax expense excluding exceptional items and exchange movements Project included in tax expense divided by Profit before tax and exceptional items. Consistent with the UK Regulations, a project is defined as the operational Adjusted effective tax and royalty rate activities that are governed by a single contract, licence, lease, concession or similar legal agreements and form the basis for payment liabilities Total tax expense excluding exceptional items and exchange movements with a government. If multiple such agreements are ‘substantially included in tax expense plus royalty expense divided by Profit before tax, interconnected’ they may be considered a project. For these purposes royalties and exceptional items. ‘substantially interconnected’ means forming a set of operationally and Current tax expense geographically integrated contracts, licences, leases or concessions or related agreements with substantially similar terms that are signed with The amount of corporate income tax and royalty-related income tax a government, giving rise to payment liabilities. currently payable and attributable to the year, measured at rates enacted or substantively enacted at year-end, together with any adjustment to those Social investment taxes payable in respect of previous years. Our voluntary contribution towards projects or donations that have the Deferred tax expense primary purpose of benefiting the communities and environments where BHP operates or has an interest in. The amount of corporate income tax and royalty-related income tax attributable to the current year but payable in future years provided using Suppliers the balance sheet liability method. Payments made to suppliers for certain operating and capital expenditure. Employees and contractors Operating expenses relate to the purchases of utilities, goods and services, whereas capital expenditure includes the purchases of property, plant and Employee data is based on a ‘point-in-time’ snapshot of employees equipment and expenditure on exploration and evaluation activities. as at 30 June 2023, including employees on extended absence, without adjustment for BHP ownership percentage. Sustainability (including sustainable and Contractor data is collected from internal surveys and the organisation’s sustainably) systems, and averages for a 10-month period from July 2022 to April 2023. We describe our approach to sustainability and its governance in the BHP Annual Report 2023, including Operating and Financial Review 6 Global Reporting Initiative Standards (Sustainability). Our references to sustainability (including sustainable The Global Reporting Initiative (GRI) Standards represent global best and sustainably) in this Report and our other disclosures do not mean practice for reporting publicly on a range of economic, environmental and we will not have any adverse impact on the economy, the environment or social impacts. Sustainability reporting based on the Standards provides society, and do not imply we will necessarily give primacy to consideration information about an organisation’s positive or negative contributions to of, or achieve any absolute outcome in relation to, any one economic, sustainable development. environmental or social issue (such as zero GHG emissions or other Government environmental effects). Any national, regional or local authority of a country (includes a UK Regulations department, agency or undertaking that is a subsidiary undertaking The Reports on Payments to Governments Regulations 2014, as amended. where the authority is the parent undertaking). UK Requirements Income tax expense The UK regulatory obligations under DTR 4.3A of the Financial The total of current tax expense and deferred tax expense. Conduct Authority’s Disclosure Guidance and Transparency Rules Payments to shareholders and investors and, where required by DTR 4.3A, the UK Regulations. Geographical distribution of dividends is based on the registered address of shareholders. 30 BHP Economic Contribution Report 2023

Our contribution Our approach to tax Our payments Additional Information Independent Auditor’s Report to the Directors of BHP Group Limited Opinion payments Responsibilities to governments of Management for the Total We have audited the Total payments to governments of $13,772 million (‘Total payments to governments’) of BHP Group Limited and its BHP Group’s management is responsible for the preparation of the subsidiaries (collectively, the BHP Group) for the year ended 30 June 2023. Report and for establishing a framework in which the Total payments to governments and other information in the Report has been prepared. In our opinion, the Total payments to governments of $13,772 million in Management has determined that this framework as set out in the Basis of the ‘Our payments to governments’ section of BHP Group’s Economic Report preparation is appropriate to the needs of the users of the Report. Contribution Report 2023 (‘the Report’) for the year ended 30 June 2023 is Management is also responsible for such internal controls as Management prepared, in all material respects, in accordance with the Basis of Report determines are necessary to enable the preparation of the Report that is preparation set out in the ‘Basis of Report preparation’ section of the free from material misstatement, whether due to fraud or error. Report (‘the Basis of Report preparation’). Basis for Opinion of Auditor’s the Total Responsibilities payments to governments for the Audit We conducted our audit in accordance with Australian Auditing Standards. Our objectives are to obtain reasonable assurance about whether the Our responsibilities under those standards are further described in Total payments to governments is free from material misstatement, the Auditor’s Responsibilities for the Audit of the Total payments to whether due to fraud or error, and to issue an auditor’s report that includes governments section of our report. We are independent of BHP Group in our opinion. Reasonable assurance is a high level of assurance, but is accordance with the ethical requirements of the Accounting Professional not a guarantee that an audit conducted in accordance with Australian and Ethical Standards Board’s APES 110 Code of Ethics for Professional Auditing Standards will always detect a material misstatement when it Accountants (including Independence Standards) (the Code) that are exists. Misstatements can arise from fraud or error and are considered relevant to our audit of the Total payments to governments in Australia, and material if, individually or in the aggregate, they could reasonably be we have fulfilled our other ethical responsibilities in accordance with these expected to influence the economic decisions of users taken on the basis requirements. We believe that the audit evidence we have obtained is of this Report. sufficient and appropriate to provide a basis for our opinion. As part of an audit in accordance with Australian Auditing Standards, and Emphasis Restriction of Matter on Reliance – Basis of Report preparation we exercise professional judgement and maintain professional scepticism throughout the audit. We also: We draw attention to the Basis of Report preparation contained in the – Identify and assess the risks of material misstatement of the Total ‘Basis of Report preparation’ section of the Report which describes the payments to governments, whether due to fraud or error, design and basis of accounting. This basis of accounting is of such importance that it is perform audit procedures responsive to those risks, and obtain audit fundamental to your understanding of the Total payments to governments. evidence that is sufficient and appropriate to provide a basis for our Our opinion is not modified in respect of this matter. opinion. The risk of not detecting a material misstatement resulting from This audit report has been prepared for the directors of BHP Group in fraud is higher than for one resulting from error, as fraud may involve accordance with our engagement agreement with BHP Group. We disclaim collusion, forgery, intentional omissions, misrepresentations, or the all responsibility to any other party for any loss or liability that the other override of internal control. party may suffer or incur arising from or relating to or in any way connected – Obtain an understanding of internal control relevant to the audit in order with the contents of our report or the reliance upon our report by the to design audit procedures that are appropriate in the circumstances, but other party. not for the purpose of expressing an opinion on the effectiveness of BHP Other Information Group’s internal control. – Evaluate the appropriateness of the Basis of Report preparation Other Information is financial and non-financial information in the Report used and related disclosures made by management. which is provided in addition to the Total payments to governments and this We communicate with the directors, among other matters, the planned auditor’s report. BHP Group is responsible for the other information. scope and timing of the audit and significant audit findings, including any Our opinion on the Total payments to governments does not cover the significant deficiencies in internal control that we identify during our audit. other information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon. In connection with our audit of the Total payments to governments, our responsibility is to read the Other Information. In doing so, we consider whether the other information is materially inconsistent with the Total Ernst & Young payments to governments or our knowledge obtained in the audit, or Melbourne otherwise appears to be materially misstated. 22 August 2023 We are required to report if we conclude that there is a material misstatement of this other information, and based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report, we have nothing to report. A member firm of Ernst & Young Global Limited Liability limited by a scheme approved under Professional Standards Legislation BHP Economic Contribution Report 2023 31

Corporate directory BHP Registered Offices Share Registrars and Transfer Offices Australia Australia New Zealand Level 18 BHP Group Limited Registrar Computershare Investor Services Limited 171 Collins Street Computershare Investor Services Pty Limited Level 2/159 Hurstmere Road Melbourne VIC 3000 Yarra Falls, 452 Johnston Street Takapuna Auckland 0622 Abbotsford VIC 3067 Postal address – Telephone Australia: 1300 55 47 57 Postal address – Private Bag 92119 Telephone International: +61 3 9609 3333 GPO Box 2975 Auckland 1142 Facsimile: +61 3 9609 3015 Melbourne VIC 3001 Telephone: Group Company Secretary Telephone: +64 9 488 8777 Stefanie Wilkinson 1300 656 780 (within Australia) +61 3 9415 4020 (outside Australia) United States BHP Corporate Centres Computershare Trust Company, N.A. Facsimile: 150 Royall Street United Kingdom +61 3 9473 2460 Canton MA 02021 Nova South, 160 Victoria Street London, SW1E 5LB, UK Email enquiries: Postal address – investorcentre.com/bhp PO Box 43078 Telephone: +44 20 7802 4000 Providence RI 02940-3078 Facsimile: +44 20 7802 4111 United Kingdom BHP Group Limited Depositary Telephone: Chile Computershare Investor Services PLC +1 888 404 6340 Cerro El Plomo 6000 The Pavilions, Bridgwater Road (toll-free within US) Piso 15 Bristol BS13 8AE Las Condes 7560623 Facsimile: Postal address (for general enquiries) Santiago +1 312 601 4331 The Pavilions, Bridgwater Road Telephone: +56 2 2579 5000 Bristol BS99 6ZZ ADR Depositary, Facsimile: +56 2 2207 6517 Transfer Agent and Registrar Citibank Telephone: Shareholder Services Commercial Office +44 344 472 7001 PO Box 43077 Singapore Facsimile: Providence RI 02940-3077 10 Marina Boulevard, #18-01 +44 370 703 6101 Marina Bay Financial Centre, Tower 2 Telephone: Singapore 018983 Email enquiries: webcorres@ +1 781 575 4555 (outside of US) +1 877 248 computershare.co.uk 4237 (+1-877-CITIADR) Telephone: +65 6421 6000 (toll-free within US) South Africa Facsimile: Facsimile: +65 6421 6800 BHP Group Limited Branch Register and +1 201 324 3284 Transfer Secretary Email enquiries: citibank@ Computershare Investor Services (Pty) Limited shareholders-online.com Rosebank Towers 15 Biermann Avenue Website: citi.com/dr Rosebank 2196 South Africa Postal address – Private Bag X9000 Saxonwold, 2132 South Africa Telephone: +27 11 373 0033 Facsimile: +27 11 688 5217 Email enquiries: web.queries@ computershare.co.za Holders of shares dematerialised into Strate should contact their CSDP or stockbroker. 32 BHP Economic Contribution Report 2023

How to access information on BHP You will be able to access and read our Economic Contribution Report on our website at bhp.com, along with our Annual Report, Modern Slavery Statement and a range of other publications that BHP produces. reports Read our at bhp.com Annual Modern Slavery Cover image: Report Statement Jansen, Canada. 2023 2023 Printed in Australia by IVE on FSC® certified paper. IVE Environmental Management System is certified to ISO 14001. 100 per cent of the inks used are vegetable oil based. This document is printed on Hanno Silk and Sumo Offset, both papers containing fibre sourced from well-managed, responsible, FSC® certified forests. The pulp used in this product is bleached using an elemental chlorine free (ECF) process.

BHP

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

|  |  |  |  |  | BHP Group Limited
Date: August 22, 2023 |  |  |  | By: |  | /s/ Stefanie Wilkinson
|  |  |  | Name: |  | Stefanie Wilkinson
|  |  |  | Title: |  | Group Company Secretary