Governments
Who are They?
We engage with governments (including regulators) across local, national and international levels.
Interests and Concerns
Governments at national, regional and local levels establish the legislative and regulatory policy frameworks for the operations of all companies involved in the resources sector. This engagement extends through all stages of project life cycles from initial entry to new countries, the allocation of exploration acreage and the issuance of production and other licences, to the approval and monitoring of closure plans. Governments also have critical roles to play in activities related to market access, product stewardship, environmental performance, social policy and fiscal regimes applicable to the resources sector.
The United Nations and its agencies, such as the World Bank, are also important stakeholders for BHP Billiton. These organisations are important agents for the promotion of good governance structures and practices in the developing world and often provide finance for resource-based projects. World Bank funding most often contains performance standards that need to be met, particularly in relation to environmental and social aspects of resources projects.
We work with host governments that participate in the Extractive Industries Transparency Initiative regarding disclosure of payments of taxes and policies. Policy formulation often intersects with aspects of our operations. Governments have mechanisms of regulation that cover a range of aspects within our operations, particularly environmental and social aspects.
BHP Billiton respects the authority of host governments. Our operations are required to work within relevant legislative frameworks at the international, national and local levels. We seek to have an open and constructive relationship with governments and regularly share information and opinions on issues that affect the Company. This communication is essential to informed decision-making by Governments and BHP Billiton.
No Contributions to Political Parties
The Company maintains a position of impartiality with respect to party politics. Accordingly, we do not contribute funds to any political party, politician or candidate for public office in any country. We do, however, attend selected events such as political party conventions for the purpose of better understanding the implications of public policy development on business operations. Employees are free to participate in political activities as individuals and, if there is any doubt, they are asked to ensure that it is clear they are representing their personal views and not those of the Company.
Public Policy Development
The Company participates in public debate of policy issues that affect us in the countries in which we operate. Relevant issues are discussed with government ministers and officials, and we often provide written submissions to public inquiries and other investigations about the likely impact of proposed policies on the Company or suggest initiatives we believe would provide win-win solutions for stakeholders.
A summary of government relations issues of interest to the Company over the reporting period is provided in the following table.
Global |
Extractive Industries Transparency Initiative regarding disclosure of payments of taxes and policies; investment performance standards; global energy policy including resource access and climate change; fiscal regimes applicable to the resources sector; the application of stewardship models to scarce water resources; harmonisation of competition policy; trade policy liberalisation including improvements in market access through multilateral and bilateral free trade agreements (including the Doha Round and Free Trade Agreement negotiations; support for the development of best practice mining and petroleum legal and fiscal regimes in new provinces of interest; and general security matters |
Australia |
Uranium mining, stewardship and export policy; infrastructure access and regulation; energy and environmental policies; national industrial relations and occupational health and safety policies; fiscal and general taxation regimes; submissions on Corporations Act and Corporate Social Responsibility |
Chile |
Application of the amended fiscal regime to Company operations; security of access to critical inputs such as energy and water |
European Union |
New EU regulatory framework for chemicals (REACH) proposals; competition policy; energy and climate change policy including proposals for carbon emissions trading regimes |
South Africa |
Implementation of the Mineral and Petroleum Resources Development Act; compliance with the Black Economic Empowerment Scorecard; infrastructure development and access |
United States |
Harmonisation of competition policy; the development of national energy policy including the supply of liquified natural gas to the west coast |
United Kingdom |
Takeover Code Article 11; energy and climate change policy |
In addition, BHP Billiton is a member of numerous industry and business associations that are actively engaged in public policy debate on issues relevant to the resources sector. Examples of these organisations include the International Council on Mining and Metals, commodity specific organisations such as the Nickel and Copper Development Institutes, and national mining and petroleum councils. The Company provides advice on public policy issues to these organisations to assist them in their own representations to governments and other stakeholders. Read more: Industry Associations.
