South32 : Tax Transparency and Payments to Governments Report 2022

TAX TRANSPARENCY AND PAYMENTS TO GOVERNMENTS REPORT 2022

About this report

Contents

Tax Transparency and Payments to Governments Report 2022

This report is about our approach to payments of taxes and contributions to governments where we operate.

Our 2022 Annual Reporting Suite

You can view all the documents in our Annual Reporting Suite at www.south32.net, including:

ANNUAL	SUSTAINABLE	SUSTAINABILITY
REPORT	DEVELOPMENT	DATABOOK
2022	REPORT 2022	2022

Annual Report	Sustainable	Sustainability
	Development Report	Databook
CORPORATE	MODERN
GOVERNANCE	SLAVERY
STATEMENT	STATEMENT
2022	2022

Corporate Governance	Modern Slavery
Statement	Statement

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	10
Our underlying tax expense and underlying effective tax rate	11
Our income tax expense and effective tax rate	12
Our income tax payable and deferred tax movements	13
2022 country by country information	14
International related party dealings	15
Our equity accounted investments	17
Mineral development contracts	21
EITI expectations 2022 and GRI 207 compliance	22
Basis of preparation for the year ended 30 June 2022	23
Glossary of terms	24
Independent auditor's report	25

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 36 of the Annual Report.

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

Cover: Engineers at our Cannington operation in Australia..

Below: Anindilyakwa people on Groote Eylandt in Australia's Northern Territory.

ACKNOWLEDGEMENT

We acknowledge and pay our respects to the Indigenous, Traditional 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, Traditional and Tribal Peoples have to the lands, 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 GLOBALLY DIVERSIFIED MINING AND METALS COMPANY

We produce commodities including bauxite, alumina, aluminium, copper, silver, lead, zinc, nickel, metallurgical coal and manganese from 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.

Learn more abouthow we improve people's lives in our Annual Report at www.south32.net

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 of our stakeholders.

Learn more aboutour strategy in our Annual Report at www.south32.net

Care | Trust | Togetherness | 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.

Learn more aboutour people in our Sustainable Development Report at www.south32.net

SOUTH32 TAX TRANSPARENCY AND PAYMENTS TO GOVERNMENTS REPORT 2022

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Our portfolio

1. DIVERSIFIED PORTFOLIO WITH A BIAS TO BASE METALS

AMBLER METALS

Copper, Lead, Gold, Silver and Zinc

Operated interest/share
Non-operated interest/share	VANCOUVER
Development option
Exploration program
Office

FY22 Key Commodity Underlying EBITDA

HERMOSA

US$4.9b(a)

Zinc, Lead, Silver and Manganese

12%

By Commodity

CERROMATOSO

Aluminium value chain

35%

Nickel

Copper

BRAZIL ALUMINA

31%

Base and precious metals

Bauxite

3%

Metallurgicalcoal

Manganese ore

19%

BRAZIL ALUMINA

Alumina

17%

SIERRA GORDA

By Geography

Copper, Molybdenum and Gold

Australia

22%

61%

Africa

Americas

BRAZIL ALUMINIUM

Aluminium

SeeSegment Reporting in Note 4 to the financial statements in our Annual Report at www.south32.net for more information

1. Presented on a proportional consolidation basis and excludes manganese alloys (-US$21 million), the Brazil Aluminium smelter (-US$43 million), Hermosa (-US$12 million), and Group and unallocated costs (-US$69 million).

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LONDON

JOHANNESBURG

SOUTH AFRICA

MANGANESE

Manganese ore

		SINGAPORE
				CANNINGTON
				Silver, Lead and Zinc
				AUSTRALIA MANGANESE
				Manganese ore
	MOZAL
	ALUMINIUM
	Aluminium
				PERTH HEAD OFFICE
	HILLSIDE ALUMINIUM			WORSLEY ALUMINA
			Alumina
	Aluminium
				ILLAWARRA
				METALLURGICAL COAL
				Metallurgical coal

SOUTH32 TAX TRANSPARENCY AND PAYMENTS TO GOVERNMENTS REPORT 2022

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