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News BHP - Insightful Reporting for the Changing Mining World ,Contact Us For Reporting Any Wrong Doing
BHP's status as one of Australia's largest tax evaders is laid bare by the settlement with the Tax Office of disputes which go back to 2003. This settlement confirms what BHP has repeatedly denied – Its Singapore marketing hub was used for tax evasion using transfer pricing .
THE HON WAYNE SWAN MP
MEMBER FOR LILLEY
First raised these matters in the parliament in September 2015. BHP’s duplicity and hypocrisy was laid bare in a Senate tax inquiry in 2015. And since then at every turn BHP have continued to deny the true purpose of its dual structure and its use of its Singapore marketing hub.
The findings of the senate inquiry gave BHP the chance to c
First raised these matters in the parliament in September 2015. BHP’s duplicity and hypocrisy was laid bare in a Senate tax inquiry in 2015. And since then at every turn BHP have continued to deny the true purpose of its dual structure and its use of its Singapore marketing hub.
The findings of the senate inquiry gave BHP the chance to come clean and reform their practices and re-joining the majority of Australian businesses that pay their fair share of tax.
From that time they chose to deny, obscure and mislead the public over their deliberate tax evasion.
The settlement with the tax office confirms more than $1 billion in tax and royalty revenue has been funnelled out of Australia over the past decade contrary to BHP public statements.
Stunningly in 2017 BHP’s annual report confirmed their CEO was awarded a million dollar bonus for enhancing BHP’s tax and transparency reputation.
BHP cannot claim to be transparent given their failure to outline numerous back payments to the tax office as a result of tax audits over a decade long period.
When global companies like BHP act this way they compromise the social contract and give a green light to others to go about minimising or evading tax.
When the former Chairman Jac Nasser retired and a new chairman Ken McKenzie was appointed BHP had the opportunity to restore its reputation as “The Big Australian” and shut down its Singapore marketing hub. It did not take this opportunity and launched another misleading adverting campaign. As I said at the time BHP was at risk at becomi
When the former Chairman Jac Nasser retired and a new chairman Ken McKenzie was appointed BHP had the opportunity to restore its reputation as “The Big Australian” and shut down its Singapore marketing hub. It did not take this opportunity and launched another misleading adverting campaign. As I said at the time BHP was at risk at becoming known as the “Dishonest Australian”.
Sadly its announcement of the settlement with the tax office continues down that path.
The BHP board now has an opportunity to be honest and forthright with the Australian people and not hide behind a legal settlement. The board should provide a full and frank explanation behind its role in aggressive transfer pricing and the ethical framework it will use in the future to re-establish trust with the authorities and the Australian Public. It should now come clean about the total amount of royalties it owes State Governments as a result of deliberately understating their sales to related parties.
Anything less than a full and frank statement about these matters leaves a cloud over the Board’s commitment to transparency.
The settlement with the Tax Office was made possible by laws I passed as Australian Treasurer in 2013 which were opposed by the Liberal National Party on the grounds they were retrospective. Congratulations to the ATO staff who pursued this matter doggedly, our pensioners, patients and students who will benefit from your hard work salute you.
These laws were used in the 2017 Chevron judgment handed down by the federal court which added $430 million to the budget bottom line. In the wash-up of this scandalous attempt to undermine the tax base, what has become evident is that some leaders of corporate conglomerates like BHP believe they are above the law. They believe this because they shield themselves behind an army of highly paid lawyers and accountants. In this case it has taken more than a decade to reach a point of some resolution. Appropriate corporate governance would have resulted in this matter being resolved much sooner, or even better not occurring in the first place.
The case could set a precedent with implications for other corporate giants, as tax authorities globally continue to question multinational marketing-hub tax structures.
The High Court rejected BHP's argument that its British and Australian arms are not "associates" for the purposes of tax laws.
The decision brings to an end a long-running dispute between the Australian Taxation Office (ATO) and the mining giant over the use of its Singapore marketing arm.
BHP had also been hit with tax bills spanning 11 years that totalled $661 million in primary tax, which it settled with the ATO in 2018. "The precedent set by the decision provides clear guidance that will assist the ATO in its efforts to ensure that other multinationals pay their fair share of tax in Australia," Ms Saint said.
What is Special Project Menager and What is his connection with RW ? Is Anybody in Flashbutt got any shares of RW or Shadow owner ? Well insiders telling us that RW got a special help by the management despite useless equipment's fails most of the time and holding the information back not sharing specification wit BHP
The BHP Group Ltd (ASX: BHP) share price has dropped more than 14% in 2024 to date, while the S&P/ASX 200 Index (ASX: XJO) has managed a gain of more than 4%. As the chart below shows, it has been a disappointing period for the ASX mining share.
It's certainly possible that the BHP valuation could keep falling. The question is – how lik
The BHP Group Ltd (ASX: BHP) share price has dropped more than 14% in 2024 to date, while the S&P/ASX 200 Index (ASX: XJO) has managed a gain of more than 4%. As the chart below shows, it has been a disappointing period for the ASX mining share.
It's certainly possible that the BHP valuation could keep falling. The question is – how likely is that?
Commodity prices can be difficult to predict, but we've certainly seen the iron ore price worsen during 2024. Tristan Harrison is one of the longest-serving writers at The Motley Fool Australia. Tristan has been contributing ASX news and stock analysis articles since 2016. His aim is to help Australians learn about great ASX shares, with a focus on ASX dividend shares and undervalued ASX growth shares. He holds an advanced diploma from the Association of Accounting Technicians and is enrolled in the Chartered Institute Management Accountant (CIMA) qualification program (https://newsbhp.com) newsbhp.com
BHP's biggest profit generator is normally the iron ore segment. However, according to Trading Economics, the iron ore price has gone from above US$140 per tonne at the start of the year to under US$110 per tonne now. I think that explains why BHP shares have fallen in the last several months.
We've seen the iron ore price drop below US$1
BHP's biggest profit generator is normally the iron ore segment. However, according to Trading Economics, the iron ore price has gone from above US$140 per tonne at the start of the year to under US$110 per tonne now. I think that explains why BHP shares have fallen in the last several months.
We've seen the iron ore price drop below US$100 per tonne a handful of times in the last few years, so it's not impossible for it to drop another 10%.
Trading Economics reported that recent data showed iron ore inventories in Chinese ports have reached a near two-year high, which implies weaker demand from Chinese steel mills for metal production. There was also weaker-than-expected inflation in China during June.
Optimistic analysts are hopeful that China will introduce new stimulus at the Third Plenum next week as the country aims to achieve 5% economic growth this year.
Trading Economics' forecast for the iron ore price, based on global models and analyst expectations, suggests it will fall to US$99 per tonne in 12 months. If it does fall below US$100 per tonne, then I'd suggest BHP shares would face headwinds.
The copper price is lower than its 2024 highs earlier in the year, falling to US$4.55 per pound because of the weak demand in China. Trading Economics predicts the copper price could rise to US$4.73 per tonne. Copper is becoming increasingly important in the BHP portfolio as it looks to build exposure to the electrification commodity and take advantage of forecasted growing demand. @(bhpjob.com)
On the whole, analysts are more positive than negative on the business. According to a Commsec collation of analyst recommendations, there are no sell ratings, 16 hold ratings and nine buy ratings.
The broker UBS currently has a neutral rating on BHP shares, with a price target of $44, which implies only a slight increase over the next ye
On the whole, analysts are more positive than negative on the business. According to a Commsec collation of analyst recommendations, there are no sell ratings, 16 hold ratings and nine buy ratings.
The broker UBS currently has a neutral rating on BHP shares, with a price target of $44, which implies only a slight increase over the next year.
UBS forecasts BHP could generate $55.5 billion in revenue, $23.6 billion in earnings before interest and tax (EBIT), $13 billion in net profit after tax (NPAT), and pay a dividend per share of $1.54.
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The Fundao dam collapse in 2015 was the largest spill of mining waste in history, and considered Brazil's worst ever environmental disaster. It unleashed a torrent of nearly 40 million cubic meters of toxic sludge, flooding 39 towns and killing 19 people "Today's revelation goes to show that we need to keep up the pressure on big companies like BHP to do the right thing," Mr Kelly said.
"BHP has assumed that because they want round-the-clock profits from their mining operations, their workers aren't entitled to their public holiday rights.
"We will make sure all our affected members receive every cent they are owed due to this stuff-up.@ https://bhpjob.com
Brazil’s worst ever environmental disaster happened eight years ago, and victims who have still not received full and fair redress took to the stage to reveal to shareholders the true scale of the liabilities BHP faces.
Five victims held the floor for over 45 minutes, asking questions and taking their turn to directly address BHP’s senior leaders.
Edertone Jose da Silva, a sandminer and one of the five victims who questioned BHP said: “I had to travel half way around the world to have my voice heard by BHP. BHP executives and board have committed two crimes – firstly, their negligence in the collapse of the dam itself but now, they are complicit in the second crime of denying me and all of the other victims of the Mariana dam disaster fair compensation.”
Alongside Jose, the victims accused the Board and Executives of:
Appearing to be caught off guard by the powerful testimonies of the victims and the questions they raised, BHP Chair Ken Mackenzie and CEO Mike Henry admitted that BHP had not quantified the contingent liabilities faced and mistakenly referred to the supposedly independent Renova Foundation as we
The admissions by Mackenzie and Henry open BHP up to further legal liabilities in the UK and Brazil where lawyers for the victims and prosecutors have accused the Renova Foundation as being controlled and manipulated by BHP.
After hearing an update from Ken Mackenzie on the apparent progress that the Renova Foundation has made just moments beforehand, Michelle Estavo vehemently refuted Mackenzie’s claims: “I left my Quilombola community in Brazil and crossed the oceans to come here today and tell you that the Renova foundation does not work. There are many communities that have not received compensation, that have not been considered into the reparation programme and they are suffering daily with the toxic mud on their doors. ogust Goodhead’s Global Managing Partner and CEO, Tom Goodhead, said: “My clients have bravely confronted BHP at their AGM forcing BHP’s Chair, CEO and largest shareholders to hear their cries for
justice. They brought home to those gathered in Adelaide how eight years on from an ecocide caused by BHP prioritising profit over safety, BHP has still failed to provide circa 700,000 of my clients with adequate compensation and has failed to remediate the environment.
“Additionally, my clients believe that BHP’s Chair and CEO have lied to their shareholders and lied to the world. They are appalled that BHP insist that the tailings released as a result of the collapse of the Mariana dam were not toxic, despite all of the evidence to the contrary, and they are astonished at the continued rhetoric of BHP claiming that the Renova Foundation provides access to justice when this is completely untrue.”
Mining giant BHP has admitted it has underpaid almost 30,000 workers, dating back to 2010, and it will cost more than $400 million to make amends.
In a statement to the ASX, BHP said a review suggested rostered employees in Australia had their leave incorrectly deducted on public holidays since 2010.
"There are approximately 28,500 affected current and former employees with an average of six leave days in total that have been incorrectly deducted from affected employees," the company told the ASX.
BHP also said it has found around 400 current and former employees in Port Hedland are entitled to additional allowances "due to an error with the employment entity in their contract".
BHP has significant export infrastructure in Port Hedland, where iron ore from its Pilbara operation is shipped.
In February it reported a half-year profit of $9.3 billion, a drop of 32 per cent.
It estimates the cost of fixing the issue will be around $US280 million pre-tax — which works out to be roughly $430 million.
The company told the ASX it is continuing to investigate the matter and an update will be provided in its full year results in August.
Friends and family have shared heartfelt tributes for the young racing enthusiast. O'Brien's father Terrence was among those to share an emotional tribute for his youngest son on social media.
"For those that don’t know it is with my broken, sinking and heavy heart that my youngest son Luke O’Brien 27 passed away yesterday after the incident at Saraji Mine," he wrote, The Courier Mail reported. "Thank you so much to everyone who has supported us in this difficult time. Love you mate RIP."
Others that knew and loved him shared their devastation over his death.
"Some very, very dear friends of mine lost their son in a mining accident I am so devastated for them," family friend wrote, describing O'Brien as an "amazing individual @bhp job
We published BHP’s trail of disasters to coincide with October 2018’s BHP London AGM. This briefing consists of a summary of five cases where BHP has left behind severe environmental damage – and one case where if it goes ahead with a project, it may do so again. We are working to develop this briefing with more detail and to include other mining companies in it. Watch this space @bhpjob.com
One of Western Australia's biggest Indigenous charitable trusts is confident it won't have to reimburse millions of dollars to BHP as the miner reevaluates its royalty payments after realising it had overpaid the organisation.
IBN Charitable Foundation is paid royalties from BHP's production at its Mining Area C (MAC) operation in the Pilbara, on behalf of three traditional owner groups, the Yinhawangka, Banjima and Nyiyaparli people.
IBN co-chair, Jeff Parnell, told National Indigenous Times the organisation and BHP had ongoing discussions over the past three years regarding the issue and he wasn't concerned at the potential to reimburse any funds.
The issue arose three years after BHP commenced production at its giant South Flank mine, adjacent to MAC, which is not part of the IBN agreement but falls within the broader Banjima native title determination.
However, royalty payments were made to IBN as the claim border runs through part of its mining pit, with MAC on one side and South Flank on the other.
Mr Parnell stressed to National Indigenous Times reimbursement requirements may not eventuate and, if they did, could gradually be paid over the decades-long period of the agreement between BHP and IBN, with little impact on his members.
Last year IBN was paid $47m in mining royalties but confirmed in its annual report last October that BHP had determined the payments were too large over an extended period, as the South Flank mine expands beyond the IBN determination area
National Indigenous Times understands BHP is working with IBN and the representatives of the three Traditional Owner groups before determining whether it will seek reimbursement of those funds.
"BHP have notified IBN that they believe they have overpaid production payments under the MAC Agreement to IBN over a number of years," IBN said in its report.
"However at the date of this report, BHP have not been able to finalise the calculation of this amount or decided whether they will indeed seek to recover the funds."
BHP's WA Iron Ore business had underlying EBITDA (earnings before interest, taxes, depreciation and amortisation) of $US21.8 billion for the financial year ending 2022, and $US16.7b for the YE 2023.
Royalty payments to IBN from BHP were nearly $47m in each of the past two financial years under the MAC agreement, an increase from $26m in FY21 and $9.4m in FY20.
According to Business News, IBN's total assets have grown to $211m, making it one of the largest indigenous charitable trusts in WA.
The current dispute follows a renegotiation of the original royalties agreement between IBN and BHP in the 2010s.
At the time, BHP said beneficiaries were not satisfied with IBN's structure, while IBN's then chairperson Lorraine Injie said it faced "the continuing threat of litigation from BHP", the publication said @Bhp Job
A 25-year-old man has died at BHP's Olympic Dam mine site in South Australia's far north, where emergency services were earlier called to what police described as a "serious crash".
But the mining giant has said the cause of the young worker's death "remains unclear", after emergency services responded to reports a pedestrian had been critically injured at the site about 5:30am.
Police have since confirmed the man, from Two Wells north of Adelaide, was pronounced dead at the scene.
Various details about the incident, including exactly what kind of vehicle was involved, have not been publicly revealed
But police have confirmed that workplace safety agency SafeWork SA has been notified, and BHP has said it is "engaging with SafeWork SA and SAPOL in relation to the incident".
"We are deeply saddened to confirm that a member of our workforce died this morning at our Olympic Dam site," a BHP spokesperson said.
"The cause of death remains unclear.
"Our thoughts are with the person's family, friends and colleagues, and we are offering all the support we can during this difficult time."
Investigators from SA Police's Major Crash unit attended the scene.
Police described the incident as a "serious crash" and said emergency services responded to reports "a pedestrian had been critically injured in a collision on private property".
SafeWork SA has confirmed it has been notified of the incident.
It said it appeared not to have been work-related but will make further enquiries.
Police will prepare a report for the coroner on bhpjob.com
Tributes are flowing for "an amazing young man" who was killed during a workplace accident this week, with the Aussie being remembered as "an absolute legend".
Luke O'Brien, 27, was killed while working at the BHP Mitsubishi Alliance's (BMA) Saraji mine in Dysart, about 200 kilometres south-west of his hometown of Mackay in Queensland. The young Aussie had been working with another man when it's understood he was pinned between a ute and fuel tanker on Monday.
Resources Safety and Health Queensland (RSHQ) confirmed that two men were working in a fuel bay area of the mine at 12pm when an "interaction with two vehicles" left O'Brien with devastating "crush injuries". "The worker was transported to hospital, but sadly he later passed away in the evening," RSHQ chief executive Rob Djukic said. RSHQ will continue to investigate the incident.
Reports suggest the ute moved backwards instead of forwards resulting in the tragic death. Operations at the mine have now been suspended.
Resources Minister Scott Stewart said safety needs to be a top priority across the industry.
"Our expectation as a government, as a community is that when workers go to work they come home the same way they leave, they come home safe and they come home as healthy as what they leave," he said. "This is just tragic, it tears families to pieces." @bhpjob.com
BHP Iron Ore Pty Ltd was today fined $125,000 after a contractor suffered a lacerated artery from being struck in the neck by a metal shard in September 2017.
The incident occurred while the contactor was working on an excavator during routine maintenance works at BHP’s Whaleback iron ore mine located about six kilometres from Newman.
BHP pleaded guilty in the South Hedland Magistrates Court after being charged with causing serious harm to an employee and failing to provide a workplace where employees were not exposed to hazards.
The contactor’s job included replacing a slew ring bearing between the excavator's superstructure and undercarriage, and replacing the track chains.
On the day of the incident, the excavator’s left-hand track became misaligned while its undercarriage was being moved onto the replacement track chains. The immediate area was cleared of all personnel other than three contractors to prepare for realigning the excavator’s undercarriage and track.
Two of the contractors were spotting while the third operated specialised equipment, known as a motivator, to power the move.
As the track train was propelled forward, a metal shard fractured and struck one of the contractors who was standing around 10 metres away in the neck.
The injured worker was treated on site before being taken to Newman Hospital, and was then transferred to Royal Perth Hospital via the Royal Flying Doctor Service.
There had been three other incidents at the Whaleback mine site involving metal shards being ejected from vehicles and equipment since 2013, so the company was aware of the potential risk to workers.
Mines Safety Director at the Department of Mines, Industry Regulation and Safety Andrew Chaplyn said the incident was preventable and that the injured contractor was lucky to be alive.
“BHP should have implemented controls to protect the workers from the risk of being struck by projectiles during the track replacement work,” Mr Chaplyn said.
“This includes developing a system of work that did not require workers to be within the 50-metre exclusion zone around the moving excavator.
“Where it was not practicable for all workers to remain outside the 50-metre exclusion zone, the company should have provided a physical barrier between the excavator and the workers.
“This incident is an important reminder that mining companies need to make safety an absolute priority.on https://newsbhp.com
BHP
BHP reported two fatalities for the financial year. Jody Byrne lost his life at a BHP rail yard at Port Hedland in February. And in May, Nathan Scholz lost his life at BHP’s Olympic Dam copper mine. Both of these fatalities involved vehicles.
BHP chief executive officer Mike Henry opened the financial year report by touching on these incidents.
“These tragic events underscore the absolute importance of safety and we are resolute in our commitment to eliminating fatalities and serious injuries at BHP,” Henry said.
“Inflationary pressures impacted our business in the year, and we remain laser focused on safety and productivity to remain competitive.
BHP suffered the most infamous derailment when in 2018 it was forced to derail a runaway train after maintenance workers accidentally applied brakes to the wrong locomotive.
Mr Byrne, 51, was killed at the mining giant's rail yard near Boodarie, on the outskirts of the port town, on Tuesday night.
Construction, Forestry, Maritime, Mining and Energy Union (CFMMEU) rail organiser Warren Johncock said there were growing safety concerns among on-ground staff in Port Hedland.
He said concerns about a lack of experienced personnel were among them.
"It's been said for a long time that what happened on Tuesday may well be the start of an increase in incidents, unwanted incidents, because of people not being given the proper time to embed their training," Mr Johncock said.
"It's all about production."
Mr Johncock said there was a lack of consultation with workers regarding fatigue management and rostering.
"People have had a gutful of being told what to do, and not having any ability to question those decisions," he said.
"If you do question those decisions, not every time but a lot of the time, you're deemed as not being a team player, and it'll cost you financially when it comes around to the bonus time."
In a statement to the ABC, a BHP spokesperson said the company would respond to any safety issues identified by authorities. "We suspended operations .for 24 hours for colleagues across [BHP's WA iron ore operations] to come together, support each other, reflect, and refocus on safety," the spokesperson said. "Investigations by BHP and regulators into this tragic incident are underway, and we will act on the findings." @ https://newsbhp.com
Incorrectly deducted leave
In 2023, BHP identified that around 28,500 current and former employees had leave incorrectly deducted from public holidays since 2010. On average, affected employees were owed six days of leave. BHP reported the incident to the authorities and said it would work to rectify the issues as quickly as possible
BHP also identified that around 400 current and former employees at Port Hedland were entitled to additional allowances due to an error with their employment entity
The Mining and Energy Union (MEU) has called on BHP to end the pay differential between Operations Services and direct employees. The MEU says that BHP has breached their legal obligations and lost numerous legal cases
Gender pay gap
BHP's median gender pay gap reflects the company's work to achieve gender balance across all role types. As of December 31, 2023, 33.4% of BHP's employees in Australia are women.
Comparison to other industries
In comparison to other industries, BHP has a larger gender pay gap than retailers. For example, BHP's median gender pay gap is 20.3%, while Woolworths is 5.7%, Coles is 5.6%, and Wesfarmers is 3.5%
BHP's Australian president Geraldine Slattery has apologised to employees affected by the errors.
"This is not good enough and falls short of the standards we expect at BHP," she said.
"We are working to rectify and remediate these issues, with interest, as quickly as possible."
BHP said it has self-reported to the Fair Work Ombudsman, and
BHP's Australian president Geraldine Slattery has apologised to employees affected by the errors.
"This is not good enough and falls short of the standards we expect at BHP," she said.
"We are working to rectify and remediate these issues, with interest, as quickly as possible."
BHP said it has self-reported to the Fair Work Ombudsman, and will contact current and former employees who have been affected.
In a video statement to employees, Ms Slattery said BHP had "discovered some issues" with the payroll system which affected employees.
"Let me call out a few things, this should not be happening at all," she said.
"I'm deeply sorry that you're being impacted."
"Please know we're committed to understanding and correcting these issues quickly
In a video statement to employees, Ms Slattery said BHP had "discovered some issues" with the payroll system which affected employees.
"Let me call out a few things, this should not be happening at all," she said.
"I'm deeply sorry that you're being impacted."
"Please know we're committed to understanding and correcting these issues quickly.
She said the issues had been reported to the Fair Work Ombudsman and former employees who may have been affected would be contacted.
BHP's chief people officer Jad Vodopija said a preliminary review showed leave had been incorrectly deducted when some employees had taken time off work on a public holiday.
She said leave hours that had been incorrectly deducted would be re-credited, plus 10 per cent, as a recognition that "this never should've happened".
Ms Vodopija said those employed by copper and gold miner OZ Minerals before it was bought by BHP in April may have also been affected.
"Our initial investigation suggests OZ Minerals has been affected by a similar issue before being acquired by BHP," she said.
"We are committed to fixing this also.
Mining and Energy Union general secretary Grahame Kelly said BHP had been "sprung ripping workers off" and the union would ensure affected members received their full entitlements
"Today's revelation goes to show that we need to keep up the pressure on big companies like BHP to do the right thing," Mr Kelly said.
"BHP has assumed that be
Mining and Energy Union general secretary Grahame Kelly said BHP had been "sprung ripping workers off" and the union would ensure affected members received their full entitlements
"Today's revelation goes to show that we need to keep up the pressure on big companies like BHP to do the right thing," Mr Kelly said.
"BHP has assumed that because they want round-the-clock profits from their mining operations, their workers aren't entitled to their public holiday rights.
"We will make sure all our affected members receive every cent they are owed due to this stuff-up.
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