BHP has injected billions of dollars into the Australian economy, with a new report revealing Queensland and Western Australia are reaping the benefits.
The miner’s latest contribution report shows approximately $33.4 billion has been poured into the country’s economy during the 2020 financial year, with the group increasing its operational work staff by 5000 to a total 45,000 employees and contractors.
BHP chief financial officer Peter Beaven said the contributions the company made through government taxes and royalties enabled funds to be reinvested into local communities.
“This significant contribution of taxation and royalty revenue to the countries in which we operate gives governments the opportunity to provide essential services to their citizens and invest in their communities for the future,” he said.
The Queensland and West Australian governments have received the most funding from BHP compared with any other state economy, with the major mining states raking in more than $7 billion through taxes and royalties.
For the 2020 financial year, BHP paid $2.8 billion in taxes and $2.6 billion in royalties to the West Australian government, while Queensland received $919 million in taxes and $819 million in royalties.
South Australia’s economy benefited from $110 million in taxation payments made by BHP and $77 million generated through royalty payments.
James Palmer, president of BHP’s central Queensland coal mining company BMA, said the economic contributions help to fund hospitals, schools and public services.
Mr Palmer said investment had shifted to assist Queensland’s response to the COVID-19 pandemic through the company’s vital resources fund.
“Spending has focused on critical areas for Queensland’s response, including local healthcare, essential services, business and financial support, mental health services, education and Indigenous communities,” he said.
For the financial period, tax payments made to the New South Wales Government were $126 million, and $107 million was paid in royalty fees. BHP paid $8 million to the Victorian Government.
BHP paid $US4.8 billion ($A6.6 billion) in taxes to the Australian Taxation Office for the 2020 financial year.
Originally published as What miner contributes to nation’s economy