Tax and Economic Contribution Report 2021
Overview
Re-imagining mining to improve people's lives
Transforming the very nature of mining for a safer, cleaner, smarter future.
At Anglo American, we are working to make this future a reality - combining integrity, creativity and smart innovation, with the utmost consideration for our people, their families, local communities, our customers and the world at large - to better connect the resources in the ground to the people who need and value them. We are working together to develop better jobs, better education and better businesses, building brighter and healthier futures around our operations in our host countries and ultimately for billions of people around the world who depend on our products every day. We include here key metrics that highlight the tax and economic contributions of our operations.
Total tax and economic contribution(1) | $m | Taxes and royalties borne(2) | $m | Number of employees(3) | |||||||||
2021 | 2020(4) | 2021 | 2020(4) | 2021 | 2020(4) | ||||||||
Australia | 2,261.8 | 2,305.6 | Australia | 244.0 | 135.6 | Australia | 2,000 | 2,000 | |||||
Botswana | 1,041.7 | 726.9 | Botswana | 398.3 | 234.9 | Botswana | 3,300 | 3,200 | |||||
Brazil | 1,931.9 | 1,342.8 | Brazil | 465.0 | 148.5 | Brazil | 4,100 | 3,900 | |||||
Canada | 196.1 | 471.3 | Canada | 8.5 | 9.4 | Canada | 650 | 700 | |||||
Chile | 3,226.2 | 2,890.1 | Chile | 849.6 | 370.3 | Chile | 4,300 | 3,800 | |||||
Namibia | 538.5 | 484.0 | Namibia | 76.8 | 132.2 | Namibia | 1,500 | 1,400 | |||||
Peru | 1,333.8 | 1,307.1 | Peru | 5.8 | 9.5 | Peru | 750 | 400 | |||||
Singapore | 551.9 | 132.3 | Singapore | 36.3 | 13.2 | Singapore | 350 | 300 | |||||
South Africa | 9,134.7 | 6,627.4 | South Africa | 3,710.6 | 1,560.5 | South Africa | 41,450 | 44,500 | |||||
United Kingdom | 1,597.0 | 1,689.3 | United Kingdom | 199.6 | 120.6 | United Kingdom | 1,900 | 1,500 | |||||
Zimbabwe | 348.7 | 214.9 | Zimbabwe | 109.7 | 28.9 | Zimbabwe | 1,600 | 1,400 | |||||
Other | 250.7 | 174.2 | Other | 38.4 | 26.8 | Other | 1,700 | 1,900 | |||||
Total | 22,412.9 | 18,365.9 | Total A | 6,142.6 | 2,790.5 | Total | 63,600 | 65,000 | |||||
- Total tax and economic contribution comprises of the sum of total taxes and royalties borne, taxes collected, corporate social investment, wages and related payments, and total country procurement, (including capital investment).
- Taxes and royalties borne are payments in respect of taxes directly incurred by Anglo American as a result of its economic activity. This amount is made up of corporate income tax, royalties and mining taxes, and other payments borne.
- Average number of Group employees, excluding employees of contractors, associates' and joint ventures' employees, and including a proportionate share, based on percentage shareholding of employees within joint operations.
- 2020 data has been rebased in order to provide like-for-like comparability as per the updated basis of preparation outlined on page 5.
- The figures $6,142.6 million and $2,790.5 million have been subject to limited assurance by Pricewaterhouse Coopers LLP and is referred to as the 'Selected Information', in their assurance report on page 33. Basis of preparation as per page 32.
Total cash value distributed to stakeholders of $30.4 billion(5)
12,000
10,000
About this report
This report demonstrates the importance to Anglo American of responsibility, compliance and transparency in relation to our tax and economic contributions as we strive to be a Trusted Corporate Leader.
To be a trusted leader it is important to listen to our stakeholders and regularly reassess ourselves against, not only our standards, but also best practice. This philosophy guides us in our journey of being open, honest and transparent.
The purpose and impact of a business cannot be assessed without understanding its tax and economic contributions, and the true value of these contributions cannot be assessed in isolation of their broader role in society. Transparency is not a destination that we want to get to, it is a dialogue we want to lead.
Our Tax and Economic Contribution Report is not just an opportunity to publish detailed breakdowns of our tax and economic contributions for all our major operating jurisdictions, it is also an opportunity to explain the principles and values that underpin our broader approach to tax, how we govern that approach, and how we engage with
our stakeholders.
This, our eighth Tax and Economic Contribution Report, is our second to be explicitly prepared in accordance with GRI 207 disclosures for tax; although we had substantively met or exceeded many of the requirements prior to its formal adoption. This year, we have sought to provide additional explanation on how tax contributes to our Sustainable Mining Plan, including specifically in relation to our approaches to external engagement and tax risk governance.
We have also improved and amended the basis of preparation of the report this year; our Finance Director Stephen Pearce explains these differences on page 5. We have included prior year data in line with the new basis, where relevant.
Cover Image
After five years of drought, and poor serviced delivery, the people in Limpopo's Mapela villages were in critical need of a reliable water supply. Recognising this need, Platinum and Hall Core Drilling, together with the Mapela Task Team (as a community stakeholder group), developed a more sustainable plan under the umbrella of Hall CoreWater Mapela (HCWM), to provide the region (comprising 42 villages) with a combined total of about 70,000 residents) with 50 litres of water per person, per day.
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8,000 | |||||||||||
6,000 | |||||||||||
4,000 | |||||||||||
2,000 | |||||||||||
0 | |||||||||||
Australia | Botswana | Brazil | Canada | Chile | Namibia | Peru | Singapore | South | Africa | Kingdom | Zimbabwe |
United | |||||||||||
Wages and related payments | Corporate social investment | Total taxes collected | Dividends | Financing | |||||||
Total procurement | Total taxes and royalties borne | Share buyback |
- Further information provided on pages 6-7and pages 20-30.
countries | Shareholders | of | capital | ||||
Other | Plc | providers | |||||
AA | Other | ||||||
Scope of the report
The purpose of this report is to provide an overview of the tax and economic contribution made by the Anglo American Group, and further transparency on how tax is managed as part of the Group's overall commercial activities. See page 32 of this report for more details.
Computational discrepancies may occur due to rounding.
Other sources of information
More information about sustainability at Anglo American, including an Excel download of our sustainability data, business unit sustainability reports, and historical reports, can be found in our Integrated Annual Report and online at www.angloamerican.com
Anglo American plc Tax and Economic Contribution Report 2021
About this report
Contents
06. Total cash value distributed to stakeholders
Here we demonstrate how our stakeholders benefit from the total cash value generated and distributed.
09. Living our Tax Strategy in 2021
03 Our business at a glance 04 Chief Executive's statement 05 Finance Director's statement
06 Total cash value distributed to stakeholders 08 Tax Strategy and our approach
09 Living our Tax Strategy in 2021
10 Tax governance and risk management - 2021 developments 11 GRI 207: Tax
12 Tax and economic contribution through the value chain 13 Our approach to sustainability
14 Sustainable Mining Plan
15 Tax and the Sustainable Mining Plan
Our reporting suite
You can find this report and others including our Integrated Annual Report, Sustainability Report (including our wider GRI disclosures), and the Tax and Economic Contribution Reports for previous years (alongside the country-by-country reporting appendices) on our corporate website:
- For more information, visit:angloamerican.com/investors/annual-reporting
Integrated Annual Report 2021
Read how we bring our Tax Strategy to life through examples from 2021.
11. GRI 207: Tax
Here we set out how we fulfil the GRI disclosures on tax. The full suite of wider disclosures under GRI Principles can be found in the Sustainability Report.
15. Tax and the Sustainable Mining Plan
We set out how our Group Tax Strategy and Values align to our Sustainable Mining Plan and give examples from 2021.
16 Healthy Environment
17 Thriving Communities 18 Trusted Corporate Leader
19 Country highlights
31 Reconciliation of 2021 corporate income tax 32 Basis of report preparation
33 Assurance report 34 Glossary of key terms
FutureSmart MiningTM
FutureSmart MiningTM - Our innovation- led pathway to sustainable mining
- is fundamentally changing the way we extract, process and market metals and minerals, providing our next step- change in operating and financial performance.
- For more information, visit:angloamerican.com/futuresmart/futuresmart-mining
Social channels
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angloamerican | angloamericanplc |
02 | Anglo American plc Tax and Economic Contribution Report 2021 |
Tax and Economic Contribution Report 2021
Our business at a glance
Base Metals | ||||
Diamonds | Copper | Nickel | PGMs | |
$1,100 million | $4,011 million | $320 million | $7,099 million | |
Underlying EBITDA◊ | Underlying EBITDA◊ | Underlying EBITDA◊ | Underlying EBITDA◊ |
Anglo American is a leading global mining company, with a world class portfolio of mining and processing operations and undeveloped resources, with more than 106,000 people working for us around the world, in 15 countries.
We provide many of the essential metals and minerals that are fundamental to the transition to a low carbon economy and enabling a cleaner, greener, more sustainable world, as well as meeting the growing consumer-driven demands of the world's developed and maturing economies. And we do so in a way that not only generates sustainable returns for our shareholders, but that also strives to make a real and lasting positive contribution to society as a whole.
- Our overview video gives a complete introduction to what we do and our ambitions for the future Seehttps://youtu.be/6TKaHzCT4YY
5% | 19% | 2% | 34% | ||||||||
Group underlying EBITDA◊ | Group underlying EBITDA◊ | Group underlying EBITDA◊ | Group underlying EBITDA◊ | ||||||||
32.3 Mct | 4,299 koz | ||||||||||
2 greenfield projects | 41.7 kt | ||||||||||
Production (100% basis)(1) | Peru (Quellaveco) and Finland | Production: Nickel | Production: PGMs | ||||||||
(Sakatti) | |||||||||||
647 kt | |||||||||||
Production | |||||||||||
Bulk Commodities | |||||||||||
Iron Ore | Metallurgical Coal | Manganese | Crop Nutrients | ||||||||
$6,871 million | $962 million | $315 million | $(41) million | ||||||||
Underlying EBITDA◊ | Underlying EBITDA◊ | Underlying EBITDA◊ | Underlying EBITDA◊ | ||||||||
Woodsmith is a greenfield project | |||||||||||
33% | 5% | 3.7 Mt | |||||||||
North America
800 employees(2)
$69 m wages and benefits paid(3) $42 m taxes and royalties(4) $112 m local procurement spend(5)
Canada 1
Group underlying EBITDA◊ | Group underlyingEBITDA◊ | Production: Manganese ore | Corporate and other | |||||||||
40.9 Mt | 14.9 Mt | $(3) million | ||||||||||
Production: Iron ore - Kumba | Production: Metallurgical | Underlying EBITDA◊ | ||||||||||
→ More detailed information and maps can be | ||||||||||||
22.9 Mt | ||||||||||||
found in the business unit reviews | ||||||||||||
Production: Iron ore - Minas-Rio | See pages 76-100 of the | |||||||||||
Integrated Annual Report 2021 | ||||||||||||
Finland | ||||||||||||
United Kingdom 1 | Europe | |||||||||||
2,800 employees(2) | ||||||||||||
Brazil | $452 m wages and benefits paid(3) | |||||||||||
$402 m taxesand royalties(4) | ||||||||||||
4,100 employees(2) | $619 m local procurement spend(5) | Shanghai | ||||||||||
$120 m wages and benefits paid(3) | Australia/Asia | |||||||||||
$524 m taxes and royalties(4) | ||||||||||||
$1,029 m local procurement spend(5) | 2,800 employees(2) | |||||||||||
Other Africa | $484 m wages and benefits paid(3) | |||||||||||
Product groups*
Diamonds
Copper
Nickel
Platinum Group Metals
Iron Ore
Metallurgical Coal
Manganese
Crop Nutrients
* Number within dot denotes number of operations, shown by product.
Peru
750 employees(2)
$57 m wages and benefits paid(3) $22 m taxes and royalties(4) $1,176 m local procurement spend(5)
Chile
4,300 employees(2)
$378 m wages and benefits paid(3) $959 m taxes and royalties(4) $1,829 m local procurement spend(5)
South Africa | $416 m taxes and royalties(4) | |||||||||||
6,600 employees(2) | $1,570 m local procurement spend(5) | |||||||||||
41,450 employees(2) | $334 m wages and benefits paid(3) | Singapore | ||||||||||
$1,813 m wages and benefits paid(3) | ||||||||||||
$721 m taxes and royalties(4) | ||||||||||||
$4,049 m taxes and royalties(4) | $495 m local procurement spend(5) | |||||||||||
$3,148 m local procurement spend(5) | ||||||||||||
1 Peru | Brazil 2 1 | Zimbabwe 1 | Australia 1 5 | |||||||||
3 Chile | 2 Botswana | |||||||||||
2 Namibia | South Africa 1 2 5 1 | |||||||||||
See page 101 of the
Integrated Annual Report 2021
03 | Anglo American plc Tax and Economic Contribution Report 2021 |
Tax and Economic Contribution Report 2021 | Chief Executive's statement |
Re-imagining mining to improve people's lives
"I am deeply proud of the contribution that Anglo American, and the mining industry more broadly, makes to the countries and communities in which we operate.
As our Finance Director, Stephen Pearce, sets out on page 5, this year our full suite of reports is better aligned to provide a more cohesive and comprehensive view of the sustainable value that our activities generate for all our stakeholders, and the context within which each of those contributions sit. I recommend you read this Tax and Economic Contribution Report together with our Integrated Annual Report and our Sustainability Report for more detail on the wide range of meaningful initiatives and other societal investments we have made across our business footprint. There is also a wealth of information on our website about the full breadth of our sustainability performance, including our work with host communities, and how we are Re-imaginingmining to improve people's lives.
In early 2018 we set out a series of stretching goals spanning the full breadth of sustainability, in the shape of our Sustainable Mining Plan (SMP) - integral to our FutureSmart MiningTM programme. We are making good progress towards the delivery of those goals, but we also recognise that the world moves on, as do society's expectations of us. Our commitments must be relevant and stretching, so we will continue to evolve them across our business. Likewise, we have raised the bar again in terms of social performance, through our Social Way 3.0 - a rigorous management system to drive consistently better outcomes for host communities. Just as financial performance presents an opportunity for differentiation, we see sustainability
no differently - it is integral to how we all work and to our overall business performance.
Anglo American's Purpose of Re-imagining mining to improve people's lives guides our delivery of sustainable value to our shareholders, our employees, and our broader business and societal stakeholders, and once again this report demonstrates the breadth of our significant financial and other contributions.
In this report, we set out our Total Tax and Economic Contribution of $22.4 billion for 2021, and place it into its full context, by demonstrating the additional $8.1 billion of returns to providers of capital too.
During our interim results presentation in July, Stephen explained how proud he was of the large amount of taxes and royalties that we pay and the broader financial contributions we make. This report demonstrates that we pay our taxes in the countries where the profits arise, that is, in our host countries. Therefore, when metal and mineral prices rise, so of course do our tax payments and royalty contributions. We believe this is a sure sign that the tax systems are working as they should in relation to our activities, resulting in significantly increased benefits for our stakeholders.
The need to reform the international tax system in light of the impacts that digitalisation and globalisation have had on businesses is a very live topic, and global agreements in 2021 to reform the international framework are welcome. Anglo American has continued to play an active and forward-looking role in these discussions, advocating for greater transparency and improvements to policy and regulations
- just one example of the way in which we seek to be a Trusted Corporate Leader. This year we have provided case studies that
give more context on the significant contribution our specialist tax team makes through their specific sustainability commitments on pages 15-18. It's not just what we do that's important, it's also the way that we do it and why.
When we first delivered our Tax and Economic Contribution Report, two years after I was appointed Chief Executive of Anglo American, we believed we were a front runner in developing the best practice metrics in this area, for which we were recognised. Over the years, we have added to, and improved, our reporting and considered and discussed with stakeholders the best ways to add meaningful information to the debate. This year, in the final Tax and Economic Contribution Report of my tenure, we have decided to once again proactively enhance our tax transparency reporting by setting best practice principles from those stakeholder discussions at the heart of our reporting and reporting how the value that we generate is shared in cash terms with all of our stakeholders.
We make a real difference to the lives of local people, acting as catalysts for positive change. I do not think many industries can demonstrate such a positive contribution to the countries where they earn their profits as mining does."
This, our eighth Tax and Economic Contribution Report, demonstrates the continuing progress we have made in our journey of transparency in tax reporting, built on already strong foundations. It sets out the enduring and broad-based nature of our economic contribution to society and our commitment to our host countries and communities with both the numeric data, as well as examples of initiatives and practices which exemplify Anglo American's Values.
Mark Cutifani
Chief Executive
04 | Anglo American plc Tax and Economic Contribution Report 2021 |
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Anglo American plc published this content on 04 March 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 March 2022 09:08:08 UTC.