South32 : Tax Transparency and Payments to Governments Report 2021

FOR FUTURE GENERATIONS

TAX TRANSPARENCY AND PAYMENTS TO GOVERNMENTS REPORT

2021

Tax Transparency and Payments to Governments Report 2021

South32

Contents

About us	1
Our portfolio	2
Our strategy	4
Introduction	5
Our approach to tax	6
Total payments made by country and level of government	8
Total payments to government by project	9
Our underlying effective tax rate	10
Our income tax expense	11
Our income tax payable and deferred tax movements	12
2021 country by country information	13
International related party dealings	14
Our equity accounted investments	16
Mineral development contracts	18
Basis of preparation for the year ended 30 June 2021	19
Glossary of terms	20
Independent auditor's report	21

See our reporting suite athttps://www.south32.net/investors-media/investor-centre/annual-reporting-suite,including the:

Sustainable Development Report

An overview of how our business-wide processes support our sustainability objectives and how we manage our key sustainability topics.

Sustainability Databook

Our supplementary reporting tool containing metrics and additional sustainability information.

Annual Report

Comprehensive information on our activities and financial performance throughout FY21.

Corporate Governance Statement

Our corporate governance practices and a description of our approach to responsible and ethical behaviour.

Modern Slavery Statement

Outlines our approach and the steps taken to seek to minimise the risk of modern slavery in our business.

www.south32.net

Non-IFRS

This report includes certain non-IFRS financial measures, including underlying measures of earnings, effective tax rate, returns on invested capital, cash flow and net debt, Non-IFRS measures should not be considered as alternatives of an IFRS measure of profitability, financial performance or liquidity.

For an explanation of how South32 uses non-IFRS measures, see page 34 of the Annual Report.

The meanings of individual non-IFRS measures used in this report are set out in the Glossary on page 20.

For information or to contact South32, visit www.south32.net.

ACKNOWLEDGEMENT

We acknowledge and pay our respects to the Indigenous and Tribal Peoples

of the lands, waters and territories on which South32 is located and where we conduct our business around the world.

We respect and acknowledge the unique cultural and spiritual relationships that Indigenous and Tribal Peoples have to the land, waters and territories, and their rich contribution to society.

In the spirit of respect and reconciliation, we will continue to support initiatives that strengthen culture and ways of life so that their legacy continues and extends

to future generations.

About us

SOUTH32 IS A GLOBAL MINING AND METALS COMPANY

We produce bauxite, alumina, aluminium, metallurgical coal, manganese, nickel, silver, lead and zinc at our operations in Australia, Southern Africa and South America. With a focus on growing our base metals exposure, we also have two development options in North America and several partnerships with junior explorers around the world.

Making a difference

Our purpose is to make a difference by developing natural resources, improving people's lives now and for generations to come. We are trusted by our owners and partners to realise the potential of their resources.

See some of the ways we make a difference in our Sustainable Development Report

Optimise, Unlock, Identify

Our purpose is underpinned by a simple strategy which

is focused on optimising the performance of our operations, unlocking their potential and identifying new opportunities to create value for all our stakeholders.

Read more about our strategy on page 4

Care, Trust, Togetherness and Excellence

While our strategy outlines what we do to achieve our purpose, our values of care, trust, togetherness and excellence guide how we do it. Every day, our values shape the way we behave and the standards we set for ourselves and others.

2021 Report Governments to Payments and Transparency Tax

1

Learn more about our people in our Sustainable Development Report

South32

Tax Transparency and Payments to Governments Report 2021

2

South32

Our portfolio

DIVERSIFIED PORTFOLIO WITH A BIAS TO BASE METALS

			AMBLER METALS
			Copper, Lead, Gold, Silver & Zinc
ROOSEVELT PROJECT			FREEGOLD VENTURES
Copper, Zinc, Lead, Silver & Gold			Copper & Gold

JUPITER PROJECT

Copper, Zinc, Lead, Silver & Gold

VANCOUVER

EMX ROYALTY CORP

Copper & Gold

SILVER BULL RESOURCES

Zinc, Silver, Lead & Copper

HERMOSA

Zinc, Lead, Silver& Manganese

CERROMATOSO

Nickel

	MINERAÇÃO RIO DO NORTE (MRN)
	Bauxite
			BRAZIL ALUMINA
			Alumina
	AUSQUEST
	Copper & Gold
Office	SABLE RESOURCES
Copper & Gold
Upstream operations
Downstream processing facilities	MINSUD RESOURCES
Development option
Copper, Gold & Molybdenum
Exploration partnership/project
South32 investment

(1) During FY21, we divested our interest in South Africa Energy Coal and the TEMCO manganese alloy smelter.

Our commodities

We produce alumina, aluminium, ferronickel, silver, lead and zinc, which have applications in construction, transport, consumer goods, renewable energy generation and battery storage and we mine metallurgical coal and manganese ore which are used to produce steel. We have operations and development options in Australia, Africa and

the Americas and a geographically diverse customer base.

Discover more about our business model on page 10

of our Annual Report

Portfolio outlook

We are actively reshaping our portfolio to increase our exposure

to the base metals critical in the transition to a low-carbon world. In addition, we are building our pipeline of opportunities by investing through the drill bit. We currently have more than 20 greenfield exploration partnerships and projects targeting base metals around the world.(1)

Discover more about our strategy on page 12

of our Annual Report

2021 Report Governments to Payments and Transparency Tax

ADVENTUS MINING CORPORATION

Zinc, Lead & Silver

LONDON

JOHANNESBURG
					MOZAL
HOTAZEL			ALUMINIUM
MANGANESE MINES			Aluminium
Manganese ore		HILLSIDE ALUMINIUM
					Aluminium

HARRY'S LAKE PROJECT

Nickel

NORTH QUEENSLAND RESOURCES

Copper, Zinc, Lead, Silver & Gold

CANNINGTON

Silver, Lead & Zinc

SINGAPORE

PEGMONTMINES

Copper

GEMCO

Manganese ore

IFFLEY PROJECT

Zinc, Lead & Silver

AUSQUEST

Nickel

PERTH HEAD OFFICE

WORSLEY ALUMINA

Alumina

AUSQUEST

Copper, Lead, Silver & Zinc

AUSQUEST

Copper & Gold

ILLAWARRA

METALLURGICAL COAL

3

South32

Metallurgical coal