BHP has provided a taste of what to expect in tomorrow’s state budget with the mining giant reporting a surge in royalty payments and employee numbers.
BHP has provided a taste of what to expect in tomorrow’s state budget with the mining giant reporting a surge in royalty payments and employee numbers.
The company said today it had paid $3.02 billion in royalties to the West Australian government in the year to June 2021, an increase of 25 per cent.
It also reported a very large 47 per cent increase in the number of employees and contractors in its WA operations, to 20,844 people.
Both sets of numbers reflect the boom conditions in BHP’s WA iron ore operations, which benefited from record prices during the financial year.
With Rio Tinto, Fortescue Metals Group and other iron ore miners also paying higher royalties, the government is expected to unveil a $5 billion-plus budget surplus tomorrow.
The budget papers will also reveal treasury’s views on the iron ore outlook, following a sharp and widely expected fall in prices over the past two months.
BHP’s economic contribution report also detailed its spending with suppliers, which increased to $4.5 billion in WA.
A subset of this total comes from its local buying program.
The company said it spent $42 million with local small businesses through this program.
One small business to benefit was Perth-based KingKira Group, owned by Nyiyaparli woman Tammy O'Connor.
“KingKira started working with BHP 12 months ago at South Flank, collecting scrap steel around site,” Ms O'Connor said.
“We then started doing smaller jobs through the Local Buy program and it has allowed us to expand to a point where we now provide labour hire, equipment hire and industrial services, employing 12 people on rosters through Newman, from gardeners to civil operators.
“Four or five of those people didn’t even have jobs to start off with.
“I feel really proud to be able to help them and their family, especially through Covid.
“We’ve opened a base in Newman and now looking to expand into Port Hedland.”
WA iron ore asset president Brandon Craig said the past 18 months have thrown unprecedented challenges at all West Australians.
“We are determined to keep playing our part in supporting regional communities across the Pilbara and Goldfields and the WA economy through jobs, skills, training, business opportunities and social investments,” he said.
BHP said its total economic contribution nationally was $34.1 billion last financial year.
This comprised $12.4 billion in tax, royalty and other payments to governments, $11.1 billion of spending with suppliers, $6 billion in dividends and interest, $4.5 billion in employee wages, and $100 million in community investment projects.
It has about 45,000 employees and contractors across Australia.
